EMI + WMG = $300 Million In “Cost Benefits” + Global Synergies
An analysis by Bear Stearns shows that connecting EMI and Warners Music Group could net $300 million in "cost benefits" making a merger rather than a buyout desirable. (more @ MSNBC)
Others see the companies complementing each other globally. "EMI has worked hard to build its U.S. businesses without much success, and Warner has really cut back overseas, so there’s an opportunity to combine those strengths and still reduce overhead," Pali Capital analyst Richard Greenfield said. "Getting bigger is better." (LA Times) EMI’s stock was up slightly on Thursday in trading on the London Stock Exchange.
PS – Just in case you’re a newbie, "cost benefits" is code for lay-offs, cut backs, and dropped artists.
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Global synergy + Cost benefit == cut that no use execs. (yeah, that’ll go nicely with the deal maker. No wonder they keep goind back and forth like a confused kindergarterners instead of a clean merger deal.)
Isn’t there a saying, combining two fubar companies doesn’t make a good company, only slightly bigger fubar company.