What If Guy Hands Bought Warner Music Group?
February 14, 2011 at 4:00 AM (PT)
In a surprising twist, BRITAIN's DAILY MAIL reports, "GUY HANDS, who lost control of record label EMI this month (NET NEWS 2/1), is understood to have been approached about making an offer for WARNER MUSIC."
WARNER MUSIC GROUP hired the investment bank GOLDMAN SACHS to seek out potential buyers for the company just over two weeks ago (NET NEWS 1/21).
THE DAILY MAIL confirms that TERRA FIRMA, GUY HANDS' private equity firm "is believed to have been sounded out by those close to the deal about making a bid for WARNER -- and then making a bid for EMI and merging the two groups. A merged group would face competition issues and would probably be allowed only one publishing arm."
A merged WMG and EMI under any new ownership would likely mean job cuts.
Should WARNER spin off its WARNER CHAPPELL PUBLISHING, as is rumored, reports have EDGAR BRONFMAN JR. making a bid for EMI, and retaining a fraction of EMI's 2,600 jobs.