The Warner Music Group has been bought for $3.3 billion after the Russian born billionaire Len Blavatnik won a bidding war to secure the company for his Access Industries company.

The music company has been sold by chief executive Edgar Bronfman Jr and the private equity firms Thomas H Lee Partners and Bain Capital Partners after they purchased the company for $2.6 billion back in 2004 from Time Warner.

The buy out sees Access Industries acquiring all of the record labels under the Warner Music umbrella and the Warner/Chappell music publishing division but has also inherited the $1.9 billion debt held by the company.

Edgar Bronfman Jr is to stay on as chief executive following the sale, he said: “We are delighted that Access will be the new steward of this outstanding business. They are supportive of the company's vision, growth strategy and artists, while bringing a fresh entrepreneurial perspective and expertise in technology and media.”

While the buy out should signal the start of better times for the company there is no denying that this is a difficult period for music companies as the industry is struggling to keep up with changes to buyers habits led by developments in technology.

Jorg Mohaupt, the head of media for Acccess Industries said: “The music industry is at an inflection point where digital adoption is rapidly gaining momentum. Warner Music, as one of the most progressive forces in the music business, is well positioned to capture this opportunity for music creation and distribution.”

Artists featuring on the Warner Music catalog include The Doors, REM, Fleetwood Mac, Eric Clapton, Frank Sinatra, Green Day, Metallica and the Bee Gees.

It is not yet known just how tor if the changes will affect the artists already signed to Warner Music when the deal is finally approved in the third quarter of the year.