Why would anyone want to sell Warner Music Group?
Or, perhaps the better question is, why would anyone want to buy it? Well, rumors late Thursday suggest that WMG wants out, and is tapping Goldman Sachs to help get it done. And, potential purchasers include Kohlberg Kravis Roberts (KKR), among others.
We’re getting thrown off the scent, though. In late December, a well-connected source told Digital Music News that Warner was a prime candidate to acquire the sullied EMI. “They have good relationships with Citibank, they know the business, and it’s the logical place for [Citi] to dump it off,” the source summarized.
And, just yesterday, the New York Times reported that Goldman is also working on an EMI acquisition bid by Warner, though these discussion threads may be concurrent. So, it sounds like WMG is either staying in the music business – and staying big – or exiting in a major way.
Okay then! Warner Music is planning an earnings announcement early on February 8th. Stay tuned on this one.