Warner Music Group recently bought the remaining financial stake in Roadrunner that they didn’t already own, but rumors are suggesting their shopping spree might not be over yet. Beleaguered label group EMI could use a bailout, and if you believe industry chatter, Warner could be the ones to do it, buying EMI’s recorded music catalog for $750 million, according to some sources.
While one analyst contacted by Digital Music News called the merger a “fantastical” idea, nobody should start popping the champagne corks yet. EMI has a debt load of $1.945 billion, which would be a pretty risky debt for any label to take on, especially when Warner themselves have seen their revenues drop in four of the last five years. One portfolio manager thought it was “impossible” for Warner to take on the debt. On the other hand, finding investors willing to get into the music game, albeit at a much reduced price from the $4 billion Terra Firma paid for it in 2007, is still a possibility as well. As with everything EMI-related, stay tuned.