Shares in Warner Music fell to a record low on Monday – more than 60 percent below their peak for the year as the last quoted recorded music company became the focus for investors’ bearishness about the industry’s prospects.
Last month’s decision by Warner, which is due to report third-quarter earnings today, to drop its seven-year pursuit of EMI has raised questions about its prospects in the absence of a merger, which could have provided cost-saving opportunities and built a stronger rival to the larger Universal Music and Sony BMG. Its shares, which peaked at $27.24 late last year, were trading at $10.67, down 3 per cent, on Monday, after analysts at Citigroup lowered their price target from $19 to $10 per share.
