In part to pay for a $6.8 million "tear down" in the Hamptons, Warner Music Group senior executive Lyor Cohen has sold 800,000 shares of company stock at $8.45 for a matching $6.8 million. Cohen still holds additional WMG holdings of 2.6 million shares.
Barrons reported that Cohen's stock sale was among the biggest since the company went public in 2005 and comes just days after WMG reported an additional $9 million loss for the previous 3 months. On Wednesday dropped 9.33% closing at $7.29 in a sell off some believe was triggered by Cohen.
Pali research analyst Rich Greenfield was critical of the sale: "Senior management continues to carry on as if the music industry was in its heyday. This simply cannot help morale at WMG." A WMG spokesman said the sale was for personal reasons including a recent divorce. "This sale reflects nothing more than a normal need for liquid assets for personal expenses as well as my financial adviser's recommendation that I diversify my portfolio for tax and estate planning." Cohen said in a statement.
TRANSLATION: The $4.4 million that WMG paid me last year for helping it loose millions wasn't enough to keep me in the manner in which I have become accustomed. And people who know a lot more than I do about money tell me to get as much of my cash as I can get away with off this sinking ship.
