No doubt you remember the Social@Ross series of concerts from this summer, which featured big-name chefs, ottoman seating, Tom Petty, Billy Joel, James Taylor, Dave Matthews, and Prince–and a $15,000 price tag. Well, according to Pali Research analyst Rich Greenfield, Warner Music Group may remember those concerts quite well! Why? Because the beleaguered record company apparently shelled out about $16 million to acquire the shows’ promoter, the Bulldog Entertainment Group, and has since lost a total of around $30 million as the result of the acquisition.

We find it very difficult to understand why WMG acquired Bulldog. How does selling (effectively) $3,000 concert tix help Warner Music sell CDs and digital downloads (not a label 360 deal, as it involved artists with nothing to do with WMG)? While it may be fun for WMG management to attend ultra-luxurious parties with their celebrity friends, it is unclear why WMG and their investors had to own and therefore foot the bill (losses) for all these events? WMG needs to be slashing costs and investing in its A&R efforts, not “partying” with the Hamptons’ crowd on the company’s bill, as if the recorded music biz was vibrant.

These are all excellent questions. (And the allegation, further down, that no one except the most desperate actually paid the $15k to get in, raises even more.) Anyone want to see if Lyor Cohen is back from his helicopter ride so he can give us an answer? We’ll wait.

I Know What WMG Did Last Summer: “Party Like it’s 1999″ [Pali Research, reg. req.; via Silicon Alley Insider]
[Photo: Getty Images]