Warner Music faces $250M in cuts

0 Comments | USA TODAY, January, 2004 | by Michael McCarthy

NEW YORK -- The private investor group that is taking over Warner Music Group is expected to move quickly to trim up to $250 million in costs at the struggling music company, say three executives with independent knowledge of the group's plans.

The group, which includes former Seagram and Universal owner Edgar Bronfman Jr., has hired Boston Consulting Group to help identify areas for cutbacks.

The group is expected to close its $2.6 billion purchase of WMG from Time Warner and take it private this month. WMG ranks as the world's fourth-largest music company with 2002 sales of $4.2 billion and artists such as Madonna, Missy Elliott, Kid Rock, Michelle Branch and the Red Hot Chili Peppers.

The new owners are considering cost-cutting moves ranging from merging...