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Warner Music Group Shares Scrape Yearly Low
July 29, 2007
Paul Resnikoff

Warner Music Group continued to experience woes on Wall Street last week, despite its recent decision to exit the bidding for EMI. Earlier, investors applauded the pullout given the heavy leverage required to outdistance private equity pursuer Terra Firma. But ongoing problems in the recorded market have placed inordinate pressure on shares, and ultimately prompted a new, 52-week low on Friday. Specifically, shares scraped $12.71 on the New York Stock Exchange before floating slightly upward to $12.76.

The move comes ahead of a scheduled Warner earnings call on Tuesday, August 7th, one that could produce lackluster results. Also stewing is an expected exit by superstar Madonna following the fulfillment of her final contractually-obligated album. The move has not been confirmed, though sources continue to point to an eventual deal with concert conglomerate Live Nation. "The loss of Madonna is not an isolated situation, it's part of a growing trend," said media entrepreneur Grayson Brulte. "Superstars have more options than ever, and they will continue to exercise those options."