WMG Reports Loss Yet Bronfman Sees No Case For EMI Merger Rebuffing Analysts Views Of $250-300 Million In Savings

Warner Music Group head Edgar Bronfman on EMI’s attempt to buy WMG:

"Consolidation for consolidation’s sake doesn’t make a lot of sense. Our’s is not a business that requires scale economics." (huh?) He claimed there was "no particular case for or against" merger. (Evening Standard)

The financial  markets see things differently as Hypebot reported yesterday with outside analysts seeing $250-$300 million in cost savings from a merger.  Today WMG reported a 2nd fiscal quarter losses of $7 million despite increasing digital revenues compared to a $4 million profit for the same period last year.

Unless Bronfman has a half dozen hit records no one knows about hidden inside his suit, he better start finding some cost savings somewhere or his investors will start wishing they’d taken EMI’s $4.23 billion offer.