No Thanksgiving At WMG
U[PDATE: WMG was down another 6.2% on Friday closing at $5.16.
Wall Street has another flat day rising just .29% on Wednesday, but that did stop investors from battering Warner Music Group stock once again. WMG fell another 11.29% in pre-turkey day trading to close at $5.50.
On Tuesday, just hours after Warner Music Group reported an $18 million quarterly loss, the company's stock had fallen 18% recovering slightly by the close of trading, ending at $6.20 down 12.8%.
It's no secret that despite improving sales, EMI is struggling under huge debt that Citi recently refused to restructure and that Warner CEO Edgar Bronfman Jr. has long coveted the major label group. But WMG is paying off a $1.1 billion debt of its own at 9.5%; and a 25% two day fall in share value reduces both the chances of a successful stock swap and investor willingness to take on more obligations.