Warner Music Group (NYSE: WMG) won’t be buying stakes in more web music services any time soon, after it wrote off $33 million on Thursday against its investments in Lala and Imeem. CEO Edgar Bronfman Jr. told analysts on the earning’s call: “We do not intend to make more digital venture capital investments. The intention was to (invest in) young companies pursuing innovative business models. Some of these digital venture capital investments have not met expectations. It makes sense to recognize the very different valuations these companies are receiving in the current economic environment.”
WMG had invested $20 million in Lala and $15 million in Imeem, but is also writing off an expectation that it would receive $4 million from Imeem specifically. The write-offs doubled WMG