Founded in 1947 by Ahmet Ertegun and Herb Abramson, it was at first principally a jazz and R&B label.

In the early 1950s, Ahmet was joined by Jerry Wexler and then Nesuhi Ertegun. From 1955, Nesuhi headed the company's jazz division and was responsible for major signings such as Charles Mingus and John Coltrane; later Joel Dorn filled this position.

Athough it began as an independent record company, Atlantic became a major player in the music business in the 1960s, with mainstream pop signings like Sonny and Cher. Sub-labels included Atco Records.

Atlantic was acquired by Warner in 1967 and is currently part of the Warner Music Group, a former division of media conglomerate Time Warner that was sold to a group of investors in 2004.