Friday, February 25th, 2011 at 2:57 pm
This is on some borderline ponzi scheme sh*t. Well not really. This is America where it’s perfectly legal for rich white men to manipulate facts and destroy other people’s careers to benefit themselves. You really need to read the whole article because they have really fancy pie charts and verbage. Warner Music Group hasn’t had a profitable quarter in two years, and Goldman Sachs is currently trying to sell the stale outlet. I’m going to highlight the key point below:
- Just in case you may think that your eyes are deceiving you, Warner Music has posted $429 million in total losses since 2005, while Junior and Lyor, just the two of them and not including several other multi-million dollar execs, pulled down $83.8 million. These guys’ take is equal to around 20% of the total losses of the company! So who’s paying for this? Well, Junior and the rest of the private equity investors who originally bought WMG in November of 2003 for $2.6 billion. Two years later they went public, but right before the offering they got all of their original investment out! Since then they’ve been playing with the house’s money and that means that the shareholders are footing the bill. Junior is a guy worth billions and as we all know by now, Lyor doesn’t exactly skimp when it comes to weekending in the Hamptons, but how many people had to lose their jobs so these guys could get bonuses for losing $429 million?
Also remember how this is the place that Maybach Music Group is going to start some kind of revolution that I’m not too sure about.