Warner Music Group Loses $18 Million
Despite major new releases by artists such as Kid Rock, Josh Groban and Michael Bublé, Warner Music Group announced yesterday that it lost $18 million in the last three months of 2010. This loss comes from the company’s declining stock value, which fell by 12 cents in the period. The company’s revenue decreased by 14 percent from the same period the previous year.
Photos: Kid Rock’s Birthday Concert
Though much of Warner’s misfortune is due to an overall slump in music sales, its immediate difficulty comes from the fact that it is the only major music label that is publicly traded and held directly accountable to shareholders.
That may not be the case for much longer, though. Warner Music Group hired Goldman Sachs last month to seek out potential buyers, either for the entire company or for particular divisions such as its publishing arm Warner Chappell.