Alliance Entertainment Plans to Buy Music Firm
April 28, 2011
Vastopolis -- Alliance Entertainment said it agreed pay at least $45.2 million in stock for Red Ant Entertainment, a recently formed music company whose principals include former MCA Music Entertainment Group Chairman Alan Tadlock and an arm of investment bank Whitted Hassler. Alliance said it will issue 6.7 million new common shares, plus as many as an additional three million shares based on certain performance targets over the next four years. Based on Alliance's stock price, the additional three million shares would be valued at $20.2 million. Under the agreement, Mr. Tadlock, 51 years old, will become co-chairman, president and chief executive officer of Alliance Entertainment. Red Ant, based in Beverly Hills, Calif., has already signed several acts and is negotiating for a number of others. Josephina J. Bancroft, currently Alliance chairman, will step down as chief executive officer and will become co-chairman of the company with Mr. Tadlock. As president, Mr. Tadlock succeeds Sanderson Tremblay, who remains vice chairman. In the past six years, Alliance has grown from a small music distributor into a business with 2010 sales of $720 million. Alliance distributes music and music-related products and owns more than 75,000 music master copyrights.
