Wednesday, March 23rd, 2011 at 2:07 pm
Interesting developments. It’s looking like BMG maybe be interested in Lyor & Bronfman’s shady outlet, but they are more interested in the publishing department (the publishing industry isn’t struggling nearly as much as the recorded music industry is) and want Sony to help them with the mess that is trying to sell music in this current climate. Interesting that although Goldman Sachs is trying to sell Warner, Warner is also considering buying EMI, who like Warner, has a f*cked outlook. They would probably only do this to increase the value of WMG before they then sell themselves.
I wish I had something witty to say, but basically if you 8 balled the music industry “Outlook Not Good” would pop up. Successful artists have always been entrepreneurs , but artists may need to start thinking more like Tech N9ne instead of Jay-Z. According to the NY Post:
- KKR’s BMG Rights Management, a joint venture between Bertelsmann and private-equity firm KKR, is talking to Sony Corp. about teaming on a deal to acquire Warner Music Group, The Post has learned.
While BMG has proposed buying all of Warner, BMG is primarily interested in Warner’s music-publishing arm, Warner/Chappell and has talked to Sony Music about taking over the recorded-music side of the business, sources said.
Sony is likely to face antitrust scrutiny given its 28.4 percent market share combined with Warner’s 19.4 percent share, although those figures include both music and publishing.Both companies are among the bidders for the No. 3 music label, run by Edgar Bronfman Jr.
Warner has hired Goldman Sachs to either sell itself off or possibly buy rival British music giant EMI, controlled by lender Citigroup.
BMG was eliminated from the first round of the sale process after submitting a bid that was deemed too low, but came back with a higher offer in the second round, sources said.
BMG’s bid was around $2.8 billion, according to the Financial Times.
Warner Music has received 10 bids for all or parts of the business, according to sources.