Warner on a "rise"?

David Jones of New York Business.com published in his article that Warner Music Group’s stock value has experienced a “sharp…rise” in their stock value after an analyst upgraded it” on Thursday. Richard Greenfield raised his ratings on Warner to “neutral” from “sell” due to the fact the company topped his 16$ per-share- price target. “Shares of Warner, which have declined 31% from the start of the year, rose 2.8% to $16.34.” This is good news and seemly the only good news I have heard in awhile for the record industry. Warner is banking on the idea that a couple of new album releases could help jumpstart sales- like Linkin Park and other various platinum acts. It is refreshing – even though it seems unlikely the monetary growth will continue in the remaining quarters and years to come. Things go up and down, especially when related to record releases- who knows if a platinum artist can continue to impress the ever-changing public.

Let’s hope that the record companies like Warner understand they can not assume because stock is rising that they are doing ok. They must foresee the future; and hope their growth will come from other monetary avenues. How about a Likin Park tour? And merchandise? Bank on the fact people want to see shows, and will buy product- just in other terms. The public have been supporting entertainment since the beginning of time – starting with Greek tragedy. Entertainment is entertainment, and I can not acknowledge enough – that “Content is King”. Remember Kevin Costner’s “Fields of Dreams… if you build it they will come”. That is the truth. Continue to build a music empire made on newer foundations.

Back to Warner we all know that Warner has been trying to buy struggling British recording giant EMI Group, in order to branch and grow internationally. Some say their offer was too high in relation to their stock and current business affairs. However EMI rejected the 4.1 billion all-cash buyout, saying it was too “inadequate”. Inadequate? hmmm, if I were running EMI; I would take a look at Warner’s stock value, and then take a look at ours. Then, I would take the money run! Run-- knowing that it is a good strategy to buddy-up and consolidate as a team to fight against the digital forces that we all know are coming. EMI, do you want to reconsider?