Warner Music to be sold for £1.8bn
Monday 02 May 2011
Two parties are battling it out to acquire Warner Music in a deal worth £1.8bn, which could be unveiled in days.
The billionaire Gores brothers and Len Blavatnik, the media and mining tycoon, are poised to submit binding bids for Warner Music, which manages artists from Michael Bublé to Jay-Z, this week. Both sides plan to inject £600m of equity into the business and assume its £1.2bn debt.
Warner Music put itself up for sale after it hired Goldman Sachs and AGM Partners to conduct a strategic review in January. It initially attracted about 10 bidders but that field has been whittled down in recent weeks.
Mr Blavatnik is an existing shareholder of Warner Music and sat on its board until 2008. He also owns Top Up TV, which sells pay-TV channels to Freeview watchers and is one of the four billionaires who have invested in TNK-BP, the oil company jointly owned by BP.
Tom and Alex Gores cut their teeth in the US private equity industry in their 20s and have made fortunes from leveraged buy-outs. Tom founded Platinum Equity in 1995 and the firm now has a wide portfolio of investments, with offices in the US and Europe.
Whichever party eventually acquires Warner Music is likely to explore a merger with EMI, which Citigroup wrested out of the hands of the business tycoon Guy Hands earlier this year. Terra Firma, the private-equity firm run by Mr Hands, acquired EMI in a £4.2bn deal in 2007.
- 1 David Cameron refers to 83-year-old Labour MP Dennis Skinner as 'Jurassic Park'
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Optical illusion turns blue demon into brunette
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Saudi Prince Alwaleed bin Talal will donate entire $32bn fortune to charity
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
German ethics council calls for incest between siblings to be legalised by Government
Saudi Prince Alwaleed bin Talal will donate entire $32bn fortune to charity
Forget little green men - aliens will look like humans, says Cambridge University evolution expert
Greece debt crisis: Country firmly on course to hold EU referendum as eurozone leaders reject new bailout request
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
Tunisia beach attack: How can British Muslims respond to the latest outrages?
iJobs Money & Business
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...