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WMG’s Shares Are… Soaring?

Posted by on May 6, 2011

Earlier this week, reports leaked out that after lucking out with so most interest from bidders (who were apparently willing to spend around $3 billion to purchase them), WMG were beginning to rub bidders the wrong way. The label was reportedly making the process so difficult that some bidders were either exiting out of the bidding race or threatening to do so. Naturally, then, all of these bidding headaches would lead to WMG’s shares soaring. Wait…what?

The Los Angeles Times is reporting that WMG’s shares actually surged more than 6% Thursday as rumors about WMG’s sale continue to grow. In fact, their shares reportedly are up 67% from January 20, the day before word got out about WMG taking bids. This is even more so amazing considering how WMG has gathered a net loss totaling $10.14 billion over the past ten years. Guess the idea of new management is a big sign of hope for many stock holders.

At the moment, many sources are pointing to Russian billionaire Len Blavatnik, the same bidder who reportedly threatened to remove his bid if a decision was not made soon, as the leading candidate. Reports are also saying that a sale could be made as soon as by the end of the week (aka, maybe even today). We’ll keep you posted as more develops (which if you believe reports will be soon).

 

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Categorised in: Label Moves