Home URBAN Bids for Warner Suggests Industry is still Alive

Bids for Warner Suggests Industry is still Alive

 width=Looks like the may not be on life support after all, if the bids to buy Warner are any indication.   “We’ve been a little surprised by the robust mess of this , given the well-chronicled problems of the ,” said Tuna N. Amobi, a media analyst at Standard & Poor’s Equity Research. “It seems that the company is open to all kinds of .”   There are at least 10 showing interest .

There have been at least 10 investors invited to submit bids which have averaged around 3 Billion for the legendary corporation and its affiliates. The board at Warner  is expected to review the offers and make a decision by early next week.   Analysts state that the global revenue for the music industry have fallen 42% since the end of the 90s.   Digital sales are increasing but not enough to offset the loss of CD sales.

Some analyst are bearish on the purchase price stating it’s simply too high but the news of the bids has helped Warners stock prices which recently traded at less than $6 a share, the stock shot up near $8 on Thursday afternoon after CBNC reported that Yucaipa was bidding $3 billion, before the share price closed at $7.52, a daily gain of 8.7 percent. On Friday it fell slightly, to $7.45. (CNBC did not cite a source for its report; a Yucaipa spokesman declined to comment on Friday.)

 

 

CEO of RF Focus, Radio and Music Industry Veteran. Radio DJ, Programmer, Musician and Voice Talent. Graduated from Performing Arts in Buffalo, N.Y. and worked at the legendary KKBT (92.3 The Beat) during its nationwide heyday in the early 90s. Also worked for Stevie Wonder at KJLH.

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