Warner Music Bidding Appears to Have Ended at $8.25 Per Share (WMG)
Warner Music Group Corp. (NYSE: WMG) shares are halted on news that its auction process is over. Both CNBC and Bloomberg have reported on a higher bid than what was expected last week. Warner Music shares closed at $7.90 yesterday…
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The reports indicated this morning that Blavatnik has won the bidding process for Warner Music Group and the buyout price is said to be $8.25 per share. The 52-week range is $4.00 to $8.15, but this was a $5.50 stock in mid-March and under $5.00 in mid-January.
The move will effectively mark the end of the public pure-play music studios, which have been under attack from independent labels started by musicians and under fire from the internet as artists have gone direct to consumers or through third-party distribution systems online. How many CD stores have you seen lately?
That this was a $25 and higher stock back in 2006 effectively has no merit today. That was then, and the world has changed.
As a reminder, until a full press release confirms the merger with both sides accepting terms we will not consider this a done deal.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
