Sony Corp still hasn’t confirmed to insiders who will replace outgoing Sony Music CEO Rolf Schmidt Holtz, whose contract ends on March 31st. Stories (including ours) have been doing the rounds for at least 3 months now that Schmidt Holtz will be replaced by current Universal Music Group chairman Doug Morris but, perhaps unsurprisingly, that move is proving complicated.
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.
After posting weak quarterly sales on Tuesday Warner Music’s shares closed down another 1.4 percent on Wednesday meaning its shares have dropped some 11 percent since Monday. As if that wasn’t enough concern, the heavily leveraged No.3 music company was given a heads-up that its debt is about to be downgraded. Ratings agency Moody’s placed ratings for Warner Music Group’s BA3 debt on review for “possible downgrade” which usually is as good as definite .
Lots of medium-sized developments at Live Nation Entertainment today.
Firstly, the world’s largest concert promoter and leading ticketing company has taken full control of Front Line Management after spending $116.2 milion to buy the remaining stake it did not already own.