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Warner Music's Lava Label to Expand

Warner Music Group’s Atlantic Group division on Thursday said it will expand its Lava Records label, home to such acts like Kid Rock, and increase its staff from about five to 35 people.

The Los Angeles Times on Thursday said Warner will pay $50 million to Lava founder Jason Flom for the share of the label it does not already own.

A Warner spokeswoman said no terms were available.

Warner Music is a unit of AOL Time Warner Inc..

The expansion and investment at Lava comes after Warner Music has let go hundreds of staffers in the past couple of years following the merger ( news – web sites) of AOL and Time Warner.

Lava, which was established in 1995 as a division of Atlantic, will increase its artist roster, and add dedicated radio promotion, publicity, and marketing departments.

In addition, Flom has signed a new long-term agreement with Atlantic Group, under which he will lead Lava, the company said.

Since its inception, Lava Records has sold in excess of 80 million records worldwide, and 50 million in the United States alone.

Among the label’s artists are Kid Rock, Uncle Kracker, matchbox twenty and Sugar Ray.

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