by Mike Masnick
Mon, Jun 1st 2009 6:22pm
warner music group
It's no secret that Warner Music has been struggling -- employing a highly questionable strategy of shutting down or suing all sorts of useful services that make its music more valuable, and then demanding ridiculous payment terms or equity in any company that might help them survive... all while the company slowly goes bankrupt. Following what can only be called a disastrous 2008, the company has shown a minor improvement in 2009, but it has all the indications of a dead cat bounce. The company was in desperate need of cash, and was able to get a loan of $1.1 billion last week to ease some of those concerns... but at a staggering 9.5% interest. Meanwhile, the guys over at Hypebot are wondering why WMG's top two executives were given $6.25 million in bonuses last year as the company was collapsing. And with some back of the envelope calculations, they note that the company could save hundreds of millions of dollars by dropping the bonuses and using the money to pay back the debt earlier, saving on some of the massive interest payments that are on the way.
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