In October 1997, Volcano merged with Dallas Austin's Rowdy Records to become Freeworld Entertainment.

[4] Freeworld was short-lived, as the label was plagued with financial trouble and the relationship with Austin faltered.

[9][10] A month later, Q Prime, led by top managers Cliff Burnstein and Peter Mensch, purchased a 50% stake in Volcano and made sure that hard-rock artist Tool would stay.

1998 also marked the year that Volcano acquired the contracts and masters of Scotti Bros. Records which had just been purchased by Pearson PLC.

Since early 2009, Sony Music Entertainment distributes Volcano products worldwide.