Comments on: Bait and switch at WMG… http://www.footnoted.org/my-big-fat-deal/bait-and-switch-at-wmg/ Michelle Leder's guide to what's hiding in SEC filings Thu, 08 Jan 2009 11:23:44 +0000 http://wordpress.org/?v=2.7 hourly 1 By: David J Phillips http://www.footnoted.org/my-big-fat-deal/bait-and-switch-at-wmg/comment-page-1/#comment-4527 David J Phillips Wed, 30 Jan 2008 17:01:04 +0000 http://www.footnoted.org/my-big-fat-deal/bait-and-switch-at-wmg/#comment-4527 Michelle: Unfortunately, WMG is paying out dividends it cannot afford, for the music content provider is highly leveraged. As of fiscal year ended September 30, 2007, total net consolidated indebtedness was $1.94 billion, with shareholder equity of $(36.0) million. Although the dividend should be cut--given that management is receiving the bulk of dividends being paid [due to present common stock structure]--Bronfman, et. al. will likely continue to bleed the Company. As you noted--dividends of the magnitude being paid to NEOs are no more than thinly veiled 'bonuses!' http://10qdetective.blogspot.com/2008/01/singing-more-bad-days-at-warner-music.html My Best- David J Phillips, Publisher www.10qdetective.blogspot.com Michelle:

Unfortunately, WMG is paying out dividends it cannot afford, for the music content provider is highly leveraged. As of fiscal year ended September 30, 2007, total net consolidated indebtedness was $1.94 billion, with shareholder equity of $(36.0) million.

Although the dividend should be cut–given that management is receiving the bulk of dividends being paid [due to present common stock structure]–Bronfman, et. al. will likely continue to bleed the Company. As you noted–dividends of the magnitude being paid to NEOs are no more than thinly veiled ‘bonuses!’

http://10qdetective.blogspot.com/2008/01/singing-more-bad-days-at-warner-music.html

My Best-
David J Phillips, Publisher
http://www.10qdetective.blogspot.com

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