Warner Music, Music Business At Record Lows
Two related items:
• U.S. album sales -- both physical and digital -- dropped 15% to 500 million units in 2007, according to Nielsen SoundScan. Nielsen says that's the lowest total it's seen since it began tracking the stat in 1993.
• Warner Music Group is trading at a record-low $5.30 per share. WMG's market cap is now $800 million, so even if you factor in a takeover premium and $2 billion of net debt, anyone who wants to buy one of the four biggest music companies in the world should be able to do so for about $3 billion ($2 billion less than the asking price for the Weather Channel).
• U.S. album sales -- both physical and digital -- dropped 15% to 500 million units in 2007, according to Nielsen SoundScan. Nielsen says that's the lowest total it's seen since it began tracking the stat in 1993.
• Warner Music Group is trading at a record-low $5.30 per share. WMG's market cap is now $800 million, so even if you factor in a takeover premium and $2 billion of net debt, anyone who wants to buy one of the four biggest music companies in the world should be able to do so for about $3 billion ($2 billion less than the asking price for the Weather Channel).
benefit from being owned by a parent company that gets technology and gets the distribution of digital content.
And yes, it would certainly send shockwaves through the industry. If I'm an music artist, I don't think I'd mind being a part of Team Apple. And it would do wonders to keep pricing simple on iTunes. The other labels would be forced to go along, or risk harming the interest of their artist and themselves.
RG
that Apple ( AAPL ) should buy Warner Music Group ( WMG ). I believe
the shareholders and the market would reward them handsomely with such a bold move. And it would place a lot of pressure on other content providers to play ball....or else!
Are you listening Mr. Jobs?