Russian tycoon buys Warner Music for $3.3bn
theregister.co.uk
Russian tycoon buys Warner Music for $3.3bn
1–10 of 27 posts
Re: Russian tycoon buys Warner Music for $3.3bn
#2>>...in a $3.3bn deal. The company's $1.9bn debt is also transferred to its new owner, valuing Warner at $1.3bn.
Wouldn't [Value of Warner] = [Price Paid] + [Debts]? Or am I missing something.
Re: Russian tycoon buys Warner Music for $3.3bn
#3By "Russian tycoon" they mean "The US-based business of Russian-born, US-educated, US-residing-since-1978 tycoon"
His company has also been a significant stakeholder in Warner Music since 2004.
Re: Russian tycoon buys Warner Music for $3.3bn
#4The article says he made his money in property and subsidized industries. I don't really know, but I'm afraid this might mean he's even more likely to pursue stupid property laws and continue antagonizing Warner's customers. Does anyone have a better idea of what might change at WM as a result of this deal?
Re: Russian tycoon buys Warner Music for $3.3bn
#5>>...in a $3.3bn deal. The company's $1.9bn debt is also transferred to its new owner, valuing Warner at $1.3bn. Wouldn't [Value of Warner] = [Price Paid] + [Debts]? Or am I missing something.
Net worth is price paid minus debts. Similar to my net worth would be my assets minus debts.
Re: Russian tycoon buys Warner Music for $3.3bn
#6>>...in a $3.3bn deal. The company's $1.9bn debt is also transferred to its new owner, valuing Warner at $1.3bn. Wouldn't [Value of Warner] = [Price Paid] + [Debts]? Or am I missing something.
Net worth is price paid minus debts. Similar to my net worth would be my assets minus debts.
Net worth is assets minus liabilities like debts. He paid 3.3 B so far, and he's still on the hook for 1.9 B in debts, so the net worth is more.
Re: Russian tycoon buys Warner Music for $3.3bn
#7this makes me wonder if music is about to be unlocked. all it really takes is for one of the majors to realize that music is a service and not a product and completely disrupt the music industry. similar to the monetization strategy of social games -- spend money chasing the people who will pay by giving them reasons to buy rather than throwing good money after bad by litigating against people who won't pay in trying to recoup some silly notion of a 'lost sale.'
then again... this is the self-destructive music industry we're talking about here.
Re: Russian tycoon buys Warner Music for $3.3bn
#8I dont know about this really. Buying a record label nowadays is like buying a social networking site- Its waste of cash
Re: Russian tycoon buys Warner Music for $3.3bn
#9In other news allofmp3.com has announced an expansion of its Warner Music library ...
Re: Russian tycoon buys Warner Music for $3.3bn
#10It's helpful to think of the flow of capital acquired through privatization of Russian state property into US-based and EU-based businesses as a form of money laundering. It's about legitimizing these assets and moving them farther away from the source of their original dubious provenance. DST investments are yet another instance of that.
From the value perspective these investments don't seem to make much sense, but value is not the primary objective, or not the only objective in this case. It's also about legitimization and moving assets outside of purview of those who could potentially reclaim them.