Sony Gets New Funding For EMI Purchase, WMG Still In The Mix
October 6, 2011 at 3:46 AM (PT)
YESTERDAY (NET NEWS 10/5), ALL ACCESS reported that the sour economy's tight credit markets may prevent CITIGROUP INC. from selling EMI GROUP at a price it desires. BLOOMBERG reported that the corporation may receive lower bids, which may prompt it to break up the conglomerate to sell in pieces, or to postpone the sale.
Lower bids or not, there's plenty of attention being paid to EMI TODAY (10/6), as REUTERS reports, "SONY CORP has secured financing from ABU DHABI's investment fund for its bid for British music company EMI," citing people close to the auction. SONY now has backing from MUBADALA, the ABU DHABI fund, and investment bank RAINE, to better compete with other bidders that include UNIVERSAL MUSIC GROUP and WARNER MUSIC GROUP."
Meanwhile, REUTERS also reports, "WARNER MUSIC GROUP Chairman EDGAR BRONFMAN JR. has tried to buy rival record label EMI GROUP for the last six years. Now, his time may have come. Initially expected to attract intense interest from private equity firms, the tightening credit market have forced them to the sidelines, leaving BRONFMAN, the billionaire heir of the SEAGRAM beverages fortune, in the serendipitous position of frontrunner to buy all of EMI."
BRONFMAN recently relinquished the CEO role at WMG, and was named Chairman (NET NEWS 8/19).