Who Won? Who Lost? A Weekly Review
1:28 pm, May 7th | by Amy Tennery
While often derided for past investment moves, Bronfman emerged this week on top. Some may have questioned Bronfman’s choice to buy Warner Music Group for $2.6 billion in 2004 — but this week clearly silenced the naysayers.
It was surprising enough when news emerged late last month that three separate bidders were each planning to offer roughly a $3 billion for the business — after all, that figure was three times the company’s estimated market value. But winning bidder Len Blavatnik then exceeded that amount, offering $3.3 billion for Warner. Needless to say, we think Bronfman must have been pleased with the deal.
On a somewhat related note, it was also announced this week that Bronfman picked up a $15.9 million Manhattan pad — less than half the listing’s original asking price, according to Bloomberg. So, not only does Bronfman own a super expensive mansion but it was also technically a bargain. Nice work!
Honorable mention: CBS honcho Les Moonves. His network raked in record earnings in the first quarter, according to an earnings report released this week, and CBS’ stock price hit a 52-week high.
This week’s loser? Howard Stringer
We hate to kick a guy when he’s down, but Sony boss Howard Stringer had a godawful week.
After reporting that 77 million Sony PlayStation gamers had their information hacked, word got out this week that an additional 25 million also had their personal data compromised. Bringing the problem from bad to worse? The New York Post found out this week that Stringer had allegedly covered up news of the additional hacking purportedly to avoid bad press during Sony’s tablet computer debuts.
For shame, Stringer. At least by Friday he’d apologized.