Doh! Guess what happens when a major label honcho sells a quarter of his stake in his company? Well, the stock tumbles more than 10%, of course.
[Warner Music Group‘s top U.S. executive for recorded music, Lyor Cohen] sold 800,000 shares on Monday at $8.45 each for around $6.8 million, according to the filing with the U.S. Securities and Exchange Commission on Tuesday. He retains ownership of another 2.6 million shares.
Warner shares fell more than 77 cents to $7.27 on the New York Stock Exchange.
Surely, Cohen must see the writing on the wall that the major label system is doomed, right? Not so fast, commie! It turns out that $6.8 million is the exact price Cohen paid back in June for a new crib:
Warner Music Group chairman Lyor Cohen is spending $6.8 million for a teardown in the Hamptons. Sources say Cohen has just closed on the property in North Haven after a bidding war erupted for the bayfront home, which was listed at $5.5 million. […]
While the four-bedroom Contemporary is nothing to crow about, the stunning 2.5-acre property has 170 feet of waterfront. Meanwhile, Cohen has taken his Bridgehampton estate with a $9.5 million price tag off the market in anticipation of his lengthy construction project.
Things are tough all over, aren’t they? Dudes are having to sell off their own companies in order to make their house payments! I bet you feel terrible now for snatching that Death Cab torrent, don’t you?
Via the rope.