Atlantic
was formed in 1947 by Ahmet Ertegun and Herb Abramson in New
York City. Atco and Cotillion were subsidiary labels and Clarion
was a budget label.
From the beginning, Atlantic was different from other independent
record companies. Their financier / dentist did not put pressure
on them for immediate return on his investment, so Herb and
Ahmet were free to make decisions based on their own good musical
judgment. They did not cheat performers, as many of the other
independent labels did. They gained a reputation for being honest,
and that reputation as much as anything was the foundation for
the success of the company.
In 1967, the three owners of Atlantic were approached by Warner
Seven Arts Corporation about selling Atlantic. Atlantic / Atco
Records, along with Warner Brothers / Reprise Records, were
to be operated as separate record companies under the ownership
umbrella of the Warner-Seven Arts Corporation.
Under Warner-Seven Arts, Atlantic and Warner-Reprise operated
independently until Warner-Seven Arts itself was purchased by
the Kinney Corporation (which later became Warner Communications)
in 1969. Kinney was a conglomerate made up of parking lots,
office cleaning companies, rental cars, magazine distribution
and funeral parlors that was seeking to branch out into the
entertainment business.
In Germany, Atlantic was handeled by Metronome until 1971. Kinney
took over in 1972. |