Thursday, May 5, 2005

Linkin Park Protests Warner Music IPO

Linkin Park protests Warner Music's upcoming IPO [Media Stock Blog]

The new owners of the Warner Music Group will be reaping a windfall of $1.4 billion from their $2.6 billion purchase a mere 18 months ago if their planned IPO moves forward. Linkin Park, their biggest act, will get nothing.

Well, if you think about it, the owners of the Warner Music Group are various private equity firms. These private equity firms get their money from pension funds and university endowments.

So who is really going to get the windfall?

Yes, the private equity firms will get the windfall.

But, so will people everywhere who (1) work for large corporations with mighty pensions, (2) work for state/local governments that have pension funds or (3) attend universities and colleges.

I am not a promoter of corporate greed, but the statement:

"WMG executives and corporate raiders have ridden the coattails of the creative community to extract massive rewards"

is a bit misleading.

Sometimes when we take from other people, we really take from ourselves. If we as everyday workers want nice universities and a great retirement, sometimes the result of those desires ends up being a situation such as this one.

Everything is inter-related.