NY Times: More Details About The Sale Of Warner Music Group
May 10, 2011 at 4:00 AM (PT)
THE NEW YORK TIMES has revealed more details about the definitive merger agreement announced FRIDAY (NET NEWS 5/6), under which ACCESS INDUSTRIES will acquire WARNER MUSIC GROUP in an all-cash transaction valued at $3.3 billion. According to documents filed with the SECURITIES AND EXCHANGE COMMISSION, "UBS and CREDIT SUISSE are providing ACCESS with $1.118 billion in financing, and the sale must be completed by NOVEMBER 11th. In addition, the documents lay out the penalties each party must pay if it breaks the deal before that deadline. If WARNER cancels the deal in favor of a superior offer for the company, it must pay ACCESS $56 million. If ACCESS pulls out, it must pay WARNER $60 million."
The report surmises that ACCESS INDUSTRIES' LEN BLAVATNIK will keep the WMG's current management intact.
There's also more about the ongoing expectation that WARNER will make an offer for EMI, when CITIGROUP puts the label up for sale this summer. "But such a deal might encounter hurdles in EUROPE," writes THE TIMES. "After the sale was announced on FRIDAY, IMPALA, a consortium of EUROPEAN independent labels, issued a news release warning that an EMI merger would 'meet a regulatory brick wall' in EUROPE."