NOT A BUNNY FANCIER: BTIG analyst Rich Greenfield, who has long been the scourge of Warner Music on Wall Street, was inspired to take another shot yesterday following the stock’s 13% spike two days earlier, spurred by reports that the company would fetch $2.5-3 billion. Noting that this price range equates to $6.60-$9.90 per WMG share, Greenfield pointedly asked, “Why Would Someone Pay Even $2.5 Billion for Warner Music?” before getting down to the nitty-gritty. “Beyond the vanity element that drove Guy Hands/Terra Firma’s disastrous acquisition of EMI, we simply do not see a reason why someone would pay $2.5bn for WMG, particularly with EMI for sale as well. We continue to believe EMI’s music publishing asset is far better positioned than Warner/Chappell.” Citing an expected 9% drop in fiscal 2011 EBITDA, falling revenues at WCM and “Non-Existent Free Cash Flow,” Greenfield places the fair value for WMG at $4.50 tops, equating to an enterprise value of $2.2 billion for the kit and kaboodle. “We simply see no reason why a buyer is going to pay a premium for WMG—these are simply not must-have assets, within an industry suffering from significant uncertainty/headwinds,” Greenfield concluded. Ouch. (4/1a)
THE COUNT: COLDPLAY IS HOT, COUNTRY'S COOKIN' IN THE U.K.
The latest tidbits from the bustling live sector (3/28a)
SONG REVENUE:
A STYLISTIC STEW MC, divas and singer-songwriters rub elbows. (3/28a)
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THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
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