A New Bidder For EMI?
August 17, 2011 at 5:15 AM (PT)
TPG CAPITAL Chief DAVID BONDERMAN is the latest name associated with being interested in buying EMI. TPG, "which earlier this year bought a 35% stake in CREATIVE ARTISTS AGENCY and formed a $500 million fund with CAA for future investments, is in the running to buy British record label EMI," reports THE NEW YORK POST.
Two weeks ago (NET NEWS 8/2), CHARLES KOPPELMAN, who recently stepped down as executive chairman at MARTHA STEWART LIVING OMNIMEDIA, was said to be pairing with buyout firm APOLLO MANAGEMENT to make a run at EMI, his old record label.
Earlier, ALL ACCESS reported on the first bid received by CITIGROUP for EMI MUSIC, when KKR-backed music publishing venture BMG RIGHTS submitted its bid for EMI. Then, BLOOMBERG reported more than 10 bidders had made offers for EMI GROUP (NET NEWS 8/1), with SONY MUSIC ENTERTAINMENT, VIVENDI SA’s UNIVERSAL MUSIC GROUP and LEN BLAVATNIK’s ACCESS INDUSTRIES HOLDINGS LLC believed to be in the running.
THE POST notes difficulties ahead for PE buyouts, as "private-equity firms need debt financing to complete a deal, and sources said that the cost of financing highly leveraged transactions like an EMI buyout has become significantly more expensive amid the grim outlook for the economy."