Warner Music Group is planning to go public and has filed with the SEC for a possible $750 million IPO. Since being taken private last year, Edgar Bronfman Jr. and co. have initiated deep cuts in spending while aggressively repaying investors in a manner that many have questioned, according to the LA Times (reg req), because they may be undermining the future for short term gains.
To cut costs "they have eliminated 1,600 positions, pared wages, slashed investments in new artists, shut offices and quadrupled employees’ health insurance premiums." Standard & Poor’s recently lowered Warner Music’s outlook from "stable" to "negative" because of rewards to management.
