EMI setback as Bronfman strikes chord with Warner
Saturday 22 November 2003
The British recording giant EMI was pondering a bleak future yesterday after it became clear its bid for the music division of Time Warner was disintegrating in the face of a richer offer from a group of investors headed by the Seagram scion, Edgar Bronfman.
Shares in EMI, which has twice before tried and failed to merge with another of the big recording companies, took a beating, at one time falling almost 11 per cent before recovering slightly on hopes that the Bronfman-Warner deal could yet unravel. They closed down 6.5p at 163p.
The acquisition of both the recording and music publishing interests of Time Warner would represent a stunning turnaround for Mr Bronfman, who has found himself out in the cold since the disastrous sale of Seagram to Vivendi three years ago.
The Bronfman consortium, put together with the children's television mogul Haim Saban and other equity groups, had been considered the dark horse in the race to win the Time Warner assets. But at a board meeting on Thursday, directors of Time Warner agreed to pursue an offer from the group valued at $2.5bn (£1.5bn).
However, all may not be lost for EMI, which previously attempted to merge with Warner Music and, on a different occasion, with Bertelsmann's BMG. Time Warner has given Mr Bronfman only until Sunday to finalise his offer. If the deadline is not met, the media giant could invite EMI back to the table.
Simon Baker, an analyst at SG Securities, said: "This is bad news for EMI. Warner Music is moving further down the horizon, if not disappearing altogether. But it is not out of possibilities and that is why the shares are not down more severely."
Mr Bronfman's involvement in the media industry began in 1995 when he decided that Seagram needed to add fizz to its staid beverages and chemicals portfolio. In a series of multibillion-dollar deals, he took control of Universal Studios and created Universal Music Group, the world's biggest record conglomerate.
He seemed to crash, however, after the sale of Seagram to Vivendi, the French water utility headed by Jean-Marie Messier, in 2000 for $34bn in stock. With Mr Bronfman at his side, Mr Messier envisaged turning Vivendi into a media powerhouse, but the company was soon swamped by debts and a collapsing stock price.
When Vivendi capitulated earlier this year and moved to sell its entertainment interests, Mr Bronfman attempted to buy them back. But he was pipped by General Electric, which already owns NBC in America. Mr Bronfman's media ambitions seemed to have been thwarted for good. By Sunday night, however, he may be firmly back in the saddle.
- 1 Malaysian cyclist could face disciplinary action after 'Save Gaza' gloves protest
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Comic Con 2014 attendees
Students offered grants if they tweet pro-Israeli propaganda
McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...