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Topic History of: Unbelievable - EMI offers more than 5 billion dollars for WMG Corp.
Max. showing the last 5 posts - (Last post first)
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Bemuso |
That must be based on their recent results. Odd... with a possible bid in the wind. Any other advisers saying sell? |
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DJones |
from HOLD to SELL.
What ever that means ... Maybe citigroup is behind the EMI bid? |
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DJones |
Record Company Swings to a Quarterly Loss
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
May 5, 2006 11:53 a.m.
Warner Music Group Corp. said it has been named in 14 class-action lawsuits related to the pricing of digital music downloads.
The recording company revealed Friday in its quarterly report with the Securities and Exchange Commission that the lawsuits follow governmental inquiries across the music industry related to the pricing of the downloads.
The investigators allege that some record companies conspired to fix prices for digital downloads. Warner Music Group has earlier said it received two subpoenas from Eliot Spitzer, the attorney general of New York, requesting information related to the investigation. In March, the company said it received a civil investigative demand from the U.S. Justice Department related to the same matter.
The announcement came as Warner Music released its fiscal second quarter results. The New York company reported a net loss of $7 million, or five cents a share, for the period, a reversal from a net income of $4 million posted in the year-earlier period. Revenue rose 4% to $796 million from $767 million.
Net income for the second quarter of 2005 included a $39 million unrealized gain on warrants issued to Time Warner Inc., its former parent. The warrants were repurchased in May 2005, when Warner Music went public.
The loss was attributable to a drop in revenue from music publishing, which offset a climb in sales of recorded music.
The company still managed to beat Wall Street estimates. Analysts polled by Thomson Financial were expecting a loss of 16 cents a share on revenue of $770.6 million.
Warner Music's revenue from its recorded-music business overall rose 9% to $676 million. Digital-recorded music accounted for 13% of the total and almost tripled from a year ago.
Music-publishing revenue declined 16% to $129 million. Digital revenue from music publishing accounted for 3% of the total.
Earlier this week, Warner said that rival EMI Group made a $4.2 billion acquisition approach but that its board unanimously rejected it. EMI's efforts may not be over as the two companies continue to consider a combination that many in the music industry see as all but inevitable. (See related article.)
On Wednesday, it took Warner's board less than an hour to reject EMI's cash-and-stock offer, which amounted to $28.50 a share, a small premium to Warner's closing price of $27.29 Tuesday on the New York Stock Exchange.
EMI's offer hasn't been withdrawn, and it isn't clear how close the two companies were to agreeing on a price. People close to the situation indicated that Warner wouldn't accept an offer of less than $30 a share, equivalent to more than $5 billion. |
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DJones |
what about the publishing?
I don't think the No.1 & 2 in the world will get the permission of the EU. |
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Lyornot |
but I bet Eric bids that |
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