TW Hears Sweeter Music

A few years ago when Time Warner's fiances were under great stress from accounting and related problems arising out of the AOL merger, TW sold its Warner Music group to a private entity led by Edgar Bronfman, Jr. With its own finances stablized and the music business looking a bit more attractive, Time Warner indicates that it is looking to exercise an option it retained in the deal to buy back 15% of the Warner Music Group now that an IPO for the Group seems increasingly likely. When the sale was finalized, TW CEO Richard Parsons said the option was essentially "shmuck insurance" that gave TW the right to buy back into a business that might again see an upside. Smart move.