New Joint Bid For Warner Music Group
April 11, 2011 at 4:11 AM (PT)
A new potential buyer has emerged for WARNER MUSIC GROUP, reports THE NEW YORK POST.
Last week (NET NEWS 4/7), ALL ACCESS reported that YUCAIPA COMPANIES had emerged as the front-runner for WARNER MUSIC GROUP. CNBC.COM reported that the offer, at $3 billion, is $200 million more than a bid submitted earlier by BMG. Both bids are for the whole company.
Now, "OAKTREE CAPITAL MANAGEMENT and publishing company PRIMARY WAVE have submitted a joint bid for WARNER MUSIC's publishing arm valued at around $1.5 billion," writes THE POST.
It's expected that WMG's Board Of Directors will meet this week to pour through the existing bids.
Some Financial Analysts Are Positive On Music As An Investment
Meanwhile, THE NEW YORK TIMES poses this question; "Could a record company still be a good investment? The bids for the WARNER MUSIC GROUP, one of the four major record companies, suggest that some people think so."
Some analysts say yes.
"We’ve been a little surprised by the robust mess of this auction, given the well-chronicled problems of the music industry," STANDARD & POOR'S EQUITY RESEARCH analyst TUNA N. AMOBI told THE TIMES. "It seems that the company is open to all kinds of scenarios."
"There is a music business, and somewhere there is a value," added WELLS FARGO analyst BISHOP CHEEN. "But this is a choppy, challenged industry. It’s going to take someone with strategic advantages and deep pockets to make it work."