Warner Music Group Shares Rise Amid Sale Rumors
The company run by chairman and CEO Edgar Bronfman Jr. is reportedly taking bids for the entire entity, instead of selling off pieces, as was expected.
Shares of Warner Music Group rose 3.4 percent on Wednesday to $7.61 as word spread the company could be bought in a matter of weeks.
The Wall Street Journal reported -- citing anonymous sources -- that instead of selling pieces of the company, as was expected, the company run by chairman and CEO Edgar Bronfman Jr. was taking bids for the entire entity.
The stock has been a tear in anticipation of a sale or other catalyst. In three weeks, shares have advanced 40%, making WMG one of the best performing media/entertainment stocks this year.
The surging stock price has left WMG with a $1.1 billion market capitalization as of Wednesday. But with debt of more than $1.9 billion and $263 million in cash, according to Yahoo Finance, the company sports an enterprise value of $2.81 billion, which is about $160 million more than the enterprise value of concert promoter Live Nation.