Money Can't Buy Me Love.

Now that he's taken Warner Music Group public and recouped all of the $165 million that came from his personal investment fund, can Edgar Bronfman Jr. successfully run the music company? That remains the challenge for Bronfman, who was pilloried for diverting much of his family's liquor fortune to the entertainment industry.

The 50-year-old onetime songwriter is talking about turning Warner into a powerful new music company centered on the digital revolution. Instead of joining the industrywide chorus of whiners who sing the blues over the detrimental effects of downloading music, Bronfman is pushing Warner as a digital treasure trove. "We can see the future as being framed either by threats to our industry, or by opportunity," Bronfman said in a speech.

The 38,000 recordings that Warner owns account for 40% of the company's annual revenue of $3.4 billion; the rest comes from new releases. Bronfman is moving to ensure that online music outlets, cell phones and other new wireless devices serve as outlets for Warner's music. In 2003 Warner became the first music company to launch a streaming music service to a wireless provider (Sprint). Many carriers sell Warner's songs as ring tones for cell users. Virgin Mobile charges $2.50 per ring tone.

In the latest quarter, digital music sales totaled $35 million, or 4.6% of Warner's revenue. Bronfman will have to sell four to five ring tones or ten 99-cent songs to replace the wholesale revenue of one $15 CD.

Hit songs would help. If the private equity partners can avoid gorging themselves on the company's ample cash, Bronfman and his quite capable music executive Lyor Cohen might have a chance to sign the hottest musicians. Ultimately there may be only one option if Bronfman is to surpass Universal Music and Sony BMG: form an alliance with the British music company EMI Group.

PHOTO (COLOR): Bronfman will have to sell a lot of cell phone ring tones to make up for dwindling CD sales.

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By Brett Pulley