Warner Music Group for Sale
January 21, 2011
Normally, radio doesn't pay too much attention to record label happenings. But I think this one is worth mentioning.
Warner has just hired Goldman Sachs to help them find a possible buyer. That type of news is a little crazy since Warner has somewhat rebounded from recent trouble. Well, not only that, but Warner also mentioned that they want to buy EMI as well. However, that rumor can be taken with a grain of salt as Warner has been rumored to buy EMI since the end of 2009.
Why should radio pay attention? And why in particular should Christian radio pay attention?
Let's put it this way. Imagine EMF wants to sell K-LOVE, hires someone to help them do that but in the mean time wants to buy the RTN family of stations.
Yes, but only when you look from the outside. From the inside Warner thinks they can buy EMI, making themselves more valuable when it comes time to name a price for being bought.
If this goes through, I can only imagine the hemorrhaging of employees and artists that aren't recouping everything each label has spent on them. For those of you who are naïve, don't think EMI CMG and Word Entertainment won't be affected by this. They carry each company's respective banner as much as the country music imprint labels do.
This is a big deal and could mean huge losses for two labels with storied histories. I just hope the buyer knows what they're doing. The music needs to continue. America can't survive without it. And neither can radio.