Report: Warner Music 'Disappointed' By Low Offers
March 9, 2011 at 4:25 AM (PT)
YESTERDAY (NET NEWS 3/8) ALL ACCESS reported that at least five groups had been told they are through to the second round of the auction for all or parts of WARNER MUSIC. Now, THE NEW YORK POST follows up and writes WMG, "is disappointed by the low-ball bids it has received so far for its prized WARNER CHAPPELL music publishing business, according to two senior music industry executives. Sources close to WARNER say that several bidders are moving through to the second round and that they've had bids around $1.5 billion, considered the low end, and at the higher end, in the $2 billion range."
It appears to be mainly financial players, rather than big music companies, that are leading the bidding.
WARNER, however, is denying the report, simply saying it had "received a range of bids."
"No one is coming up with the prices," said one source to THE POST, who added that it "appears to be mainly financial players, rather than big music companies, that are leading the bidding. While reports suggest that WMG received more than 10 bids it appears that the big strategics -- such as UNIVERSAL and SONY -- would only pursue pieces of WARNER MUSIC."
It's expected WMG will hold a board meeting later this week to decide how to proceed.
"The majority of the board is pushing [CEO] EDGAR [BRONFMAN JR.] to not just offer WARNER CHAPPELL, the publishing business," to prospective buyers, said a POST source. "Now is the time to get out and get the money -- but EDGAR is pushing back."