Zappa.com

The Official Frank Zappa Messageboards
It is currently Tue Sep 16, 2014 3:28 am

All times are UTC - 8 hours




Post new topic Reply to topic  [ 4 posts ] 
Author Message
 Post subject: Warrner Music being sold
PostPosted: Sat May 07, 2011 2:04 am 
Offline
User avatar

Joined: Sat Sep 15, 2007 9:15 am
Posts: 1321
Location: Croatia, Europe
have you heard bout this? how do you think this will affect on the music in general?

Quote:
By RYAN NAKASHIMA, AP Business Writer – Fri May 6, 10:20 am ET

LOS ANGELES – Len Blavatnik's Access Industries is buying Warner Music Group Corp., the world's third-largest recording company, for about $1.3 billion, according to a person familiar with the matter.

The person, who was not authorized to speak publicly about the matter and spoke on condition of anonymity, said the deal was expected to be announced later Friday.

The purchase, for $8.25 a share, comes amid a global decline in CD sales that continues to weigh down the industry. The buyer will also assume about $1.9 billion in debt.

U.S. recorded music sales are half what they were a little over a decade ago. Digital sales gains have started to flatten and CD sales continue to fall.

That means Blavatnik, a former board member who was part of the group that bought the company in 2004 and still has about a 2 percent stake, will have to cut payrolls further and hope that a new wave of innovation will carry digital music sales higher.

The sale ends a seven-year run by investors led by CEO Edgar Bronfman Jr., who purchased the company from Time Warner Inc. with private equity backing for $2.6 billion. Those investors slashed payrolls and took other measures to cope with music's decline. They took the company public a year later to help recoup their investment. There are now just 3,700 employees, down from 5,100 in late 2003.

The Russian-born Blavatnik, 53, will likely have to cut even more — so much so that billionaire Ron Burkle balked at pursuing the company past an initial round of bidding, because cuts might start to hurt Warner-signed artists he considers friends, such as Red Hot Chili Peppers, according to another person familiar with the matter who wasn't authorized to speak publicly.

The fortunes of the music market remain uncertain and last year, rising download sales have been offset by the collapse in the popularity of *SPAM*.

The new owner may have to bank on new services yet to take off. There's speculation that Google Inc. is coming out with a music service, and Apple Inc. with unveil a subscription plan to complement sales of individual tracks on iTunes.

Further deal-making is possible. Citibank is looking to sell Britain's EMI Group Ltd., which it seized from Guy Hands' Terra Firma private equity group in February after it defaulted on a loan.

Other groups that lost out on bidding for Warner — including No. 2 Sony Corp. — are also looking for parts that may be discarded from this deal.

In one possible scenario, Warner's new owners would make a play for No. 4 EMI in order to reap the benefit of slashing staff at a combined company, and then shed certain music labels or get rid of one of the publishing divisions to satisfy antitrust regulators.

Vivendi SA's Universal Music Group, ranked No. 1, is also looking to snap up parts of Warner, EMI or both.

source: http://news.yahoo.com/s/ap/20110506/ap_ ... oup_sale_4

_________________
Image


Last edited by Flea on Sun May 08, 2011 1:52 am, edited 2 times in total.

Top
 Profile  
 
PostPosted: Sat May 07, 2011 7:49 am 
Offline
User avatar

Joined: Sun Aug 03, 2003 3:45 am
Posts: 9423
Location: EINDHOVEN
Since some link to an article on Windows Live on this website caused the dreaded MSN startup feature to prompt at my computer without asking (Windows learn from your Clippit mistake: even computer programmes should follow etiquette), I request we in future use copy and paste instead of link. It will save us from watching ads and the discussion will still be followable if the original source should remove the article.

I have a double feeling about this. Warner has an extremely bad reputation when it comes to dealing with its artists (no doubt deserved). On the other hand, Warner has had its music library for a very, very long time. In the 30s, during the Golden Age of Cartoons, Warner started making cartoons to give its music more exposure, giving birth to both the world's first music video, and the Merry Melodies.

_________________
Image
Join the PackardGoose forum! Send me a PM!


Top
 Profile  
 
PostPosted: Sun May 08, 2011 9:23 pm 
Offline
User avatar

Joined: Mon Oct 24, 2005 2:56 pm
Posts: 4716
Less competition in the world will make for lots more shmaltzy music but then again it could also give rise to more live music. Screw the record company pricks!

_________________
Image


Top
 Profile  
 
PostPosted: Tue May 10, 2011 11:21 am 
Offline
User avatar

Joined: Fri Nov 19, 2010 10:10 am
Posts: 48
Maybe the new regime will be less lawsuit-happy?


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 4 posts ] 

All times are UTC - 8 hours


Who is online

Users browsing this forum: Bing [Bot], Google [Bot], Majestic-12 [Bot], Yahoo [Bot] and 2 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group