Sony Setback Crushes Warner
Warner Music (WMG) plunged 19% early Thursday after a European court blocked a merger of rival music companies.
The European Commission had approved the 2004 merger of Sony Music and BMG, but a court on Thursday threw out that decision, forcing European regulators to take a new look at the deal.
The news sent Warner into a tailspin because the company's shares have been bolstered in recent months by news of merger talks with London rival EMI. But merger discussions between EMI and Warner are likely to be suspended in light of the court decision, Reuters reported Thursday, citing sources.
Early Thursday, Warner slid $3.96 to $25.80.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV