It would be unfair to dwell too much on the Warner Music Groups disappointing share sale ten days ago. But everyone else seems to be, so I don't see why we should be any different.
Speculation is now rife as to the future of Edgar Bronfman Jnr at the top of the record company. Bronfman Jnr, of course, led the consortium who bought the major label off Time Warner. Shortly after acquiring the company he appointed himself to the top job, bringing in some former allies from his Universal days into senior posts, and leading a cost cutting restructuring programme in preparation for this month's flotation. However Bronfman Jnr isn't necessarily the most powerful man in the company. He is dependent on the support of Scott Sperling of Thomas Lee Partners, a key funder to the original purchase back in late 2003. At the time of the acquisition Sperling told the New York Times, "The deal with Edgar is, he does a good job or someone else comes in to do a good job." With that in mind, gossipers are now asking whether Bronfman is doing a "good job" in light of the share sale disappointments and less than glowing financials.
Bronfman's future at Warner isn't the only topic currently being speculated on. US industry website HitsDailyDouble is also asking questions about the future of Lyor Cohen, the former Island Def Jam chief who joined Warner in a top post after Bronfman took over. They reckon Cohen is unpopular internally with the Warner old guard - in particular Warner Bros Records chief Tom Whalley - as well as with the group's investors, who question what he has achieved since joining the company other than trimming down rosters and firing some people. What's more, the website argues, anyone who's got it in for Cohen will be keeping their eyes on investigations into his seemingly contradictory testimonies during a bitter legal dispute between his former employers, IDJ, and US independent label TVT. Should anything detrimental to Cohen come to light in those investigations, the gossipers say, expect certain other execs or investors to use it as ammunition to oust his from his Warners job.
So, interesting times ahead perhaps. And one last little nugget of idle speculation. Some are wondering if Sperling might be coming round to the idea that, EC bureaucracy permitting, a merger with EMI might not be the best way to recoup on that original investment. Given that some question Bronfman's original decision to ease former Warner boss Roger Ames out of the top job after the takeover, and remembering that Ames is now working as a consultant for EMI, surely there are several things to say in favour of that strategy.