Feb 2, 2005 • 1 min read

Slow market may delay Warner flotation

Warner Music Group's flotation may be put back because slow sales this year make the group less attractive to investors, according to CMU's financial contacts.

CMU's contacts in the financial world tell us that any flotation of the Warner Music Group in the US might be put back because the music market has been slow so far this year. While the cost cutting that followed the Bronfman purchase of Warner Music meant the company performed well financially in 2004, to maintain that growth the group needs to start shifting serious amounts of records this year and, despite considerable successes in its Warner Brothers and Reprise divisions last year, the group is not currently selling enough. That will make the group less attractive to potential investors, making a quick flotation

(which, it is rumoured, Bronfman's financial backers would prefer)

less viable. So much so, some city types are pondering over what other alternatives Bronfmann et al might have in moving forward with Warner without floating. None of them, however, were particularly forthcoming on what those other options might be (a merger with EMI perhaps?).

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