TodayInMusic: Warner goes up, up, up on news of race to sell…
Just 48 hours ago we pointed out how Warner Music Group shares had dropped some 11 percent as investors panicked over the extent of the downturn in the business’s fundamentals which were worse-than-expected in the all important Holiday quarter and management gave a gloomy prognosis. But this is big finance where focusing on fundamentals is for suckers…things turn around pretty quickly and Warner Music is back up.
The World’s No.3 music company crept back up just over 1 percent yesterday as some investors returned and today they’ve returned in their droves and pushed the shares up some 11 percent. Why? Well, they’re likely back because a story in the New York Post rolls out a list of names including many we knew/expected to be among 20 bidders for all or parts of Warner Music, home of acts like R.E.M and Red Hot Chili Peppers.
The Post makes the point, as we did earlier this month, that any hopes for a Warner Music sale kind of depend on what happens with EMI Music which was recently taken over Citigroup. The Post says Citi is ready for the London-based EMI sale sooner rather than later so a race is on.
Either way, management at Warner Music must be happy for now. This baby is likely to yo-yo one way or another on news of the sale process, real and imagined, for the next few weeks.
Watch this space.