To Buy EMI Or Sell Out – WMG Can’t Decide Which
A report from the New York Times indicates that he has hired investment firm Goldman Sachs to help find potential buyers for WMG. Simultaneously, he appears to be thinking about acquiring EMI. While this may seem like an "unusual two-track process" as The Times calls it, Goldman Sachs will make money either way, Peter Kafka aptly points out.
Meanwhile, Warner's private equity owners are either making a big strategic move – doubling on the music business by buying EMI – or they're cashing out seven years after having acquired the company from Time Warner. This news could make for an exciting earnings call on February 8th. In or out? What's your take?