Reports: Yucaipa's $3 Billion Is Leading Bid For WMG
Final Bids Due Today
April 7, 2011 at 1:46 PM (PT)
With final bids due TODAY, YUCAIPA COMPANIES has emerged as the front-runner for WARNER MUSIC GROUP. CNBC.COM reports that its latest offer, at $3 billion, is $200 million more than a bid submitted by BMG. Both bids are for the whole company.
Approximately 70% of YUCAIPA’s proposal is comprised by debt totaling around $2.1 billion.
The powers behind YUCAIPA are still a bit unclear at this point as MARKETWATCH cites billionaire investor RON BURKLE, while CNBC lists "several partners, including entrepreneur SEAN PARKER and investor DOUG TEITELBAUM."
Bidding for the music company division of WMG are LIVE NATION and MACANDREWS & FORBES, a private equity firm led by RON PERELMAN; their bids for that part of the business are in the neighborhood of $1 billion.
The ongoing bidding is not only driving up the price of WMG, but the label group's stock price as well, as its shares rallied more than 12% to $7.77. The stock’s rise is the strongest since a 13% spike on MARCH 29th.