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
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