Warner Music Group (WMG) CEO Robert Kyncl announced the company will focus on expanding its in-house distribution capabilities rather than acquiring independent distributors. This strategic decision comes after WMG declined to purchase Believe for approximately $1.8 billion last year.

During a Morgan Stanley mini-conference, Kyncl elaborated on the company's distribution strategy: "I've looked at all distribution companies over the last 18 months — and we're not willing to grow this at all costs. We have an incredible technology team, which has been building features already for a year and a half. So this way you get to the same outcome much more efficiently."

The company's recent organizational changes include:

• Significant job cuts and restructuring
• Strategic new hires, including Ariel Bardin for technology and digital supply chain improvements
• Closer collaboration between Kyncl and key executives like Warner Music Latin America president Alejandro Duque and Atlantic Music Group CEO Elliot Grainge

While focusing on internal development, WMG remains open to strategic acquisitions. The appointment of Michael Ryan-Southern as EVP of corporate development indicates the company's continued interest in growth opportunities through selective acquisitions.

This development occurs as Universal Music Group pursues its acquisition of Downtown Music Holdings through Virgin Music Group, a move that has raised concerns from European music trade association Impala about market consolidation.

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