The Associated Press reports that Citi investment analyst, Jason B. Baznet has given the public music and entertainment company a stock upgrade. The AP reports that Jason Baznet had this to say about WMG.
(WMG) “looks to be in a much stronger position to pursue mergers and acquisitions,” This is hinting towards the ongoing rumor of Warner’s intended merger with EMI Music and Publishing.
Baznet continues “It’s still hard for us reconcile Warner’s relatively stable (revenue) with the widespread carnage across the music industry,” He also wrote in a note to investors. “Of course, Warner’s share gains go a long way to explain the discrepancy. But, share gains in music can prove fleeting. And those reversals can wreak havoc on equity values.”
Baznet also reported that Warner CEO Edgar Bronfman Jr.. will be moving to London, about a mile away from EMI’s headquarters. Bronfman is making this obvious move while continuing to deny talks of an EMI merger.