p2pnet - rss feed: Warner Music IPO falls flat
p2pnet.net News:- Even Led Zeppelin’s Jimmy Page couldn’t do it for Eddie and the WMG when they opened at the New York Stock Exchange.
Page was there as Edgar Bronfman jr’s Warner Music Group launched its IPO.
But, still suffering from heavy fall-out created by “fleecing” accusations from its biggest band, Linkin Park, WMG’s initial public offering, priced at $17 in its first day of trading, plummeted by 60 cents.
“The company, heavily criticized in the media and by its biggest musical act for its initial public offering plans, had to reduce its offering price from $22 to $24 after a negative reception from investors,” says Forbes.
“Goldman Sachs and Morgan Stanley were the lead underwriters for the IPO,” says Reuters, quoting University of Florida professor and IPO expert Jay Ritter as saying, “The underwriter finds it a little embarrassing when the price falls.”
Of the planned, “$750 million raised by an IPO, only about $7 million will be put toward the company’s own operations, with no money going to WMG artists,” said Linkin Park in the statement headed Linkin Park Opposes Fleecing of Warner Music, Demands Immediate Release.
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See:-
Forbes - Warner Music Stock Falls in 1st Trading Day, May 11, 2005
Reuters - Warner Music falls in debut, May 11, 2005
$750 million - Linkin Park hates WMG, p2pnet, May 2, 2005
May 12th, 2005 at 4:40 am
awwww poor babies, reality finally setting in…in a realm you can actullay comprehend??
May 12th, 2005 at 6:30 am
“Of the planned, “$750 million raised by an IPO, only about $7 million will be put toward the company’s own operations, with no money going to WMG artists,”
well there’s a big supprise. I think I’m gonna have a heart attack and die, from that supprise… whoops, hope I don’t get sued.
Rick
May 12th, 2005 at 12:55 pm
Not really sure why they wanted to go public in the first place. They seem to have enough capital, and they don’t really have anything other than a sustaining product (read: Old Artitsts.)
I guess that the IPO frenzy isn’t quite gone yet.
May 14th, 2005 at 5:13 am
What is planned here is a major coup for the CEO’s, not the label nor the stockholders. The majority of that money was earmarked for the bonuses of the top 5 in the company. Anytime a CEO and admin get compensated out of proportion to the job they are doing and what it is actually worth you wind up with a give a way. Some people would call it theft. No potential stockholder was clued into the idea of what they were actually buying.