Aw, Buzzkill: Sean Parker Likely Bailing on Warner Music Purchase

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It was a twisted fairy tale that may never happen, and maybe it’s all for the better.

Ahead of the weekend, word leaked from several sources that the billionaire consortium led by Ron Burkle was bowing out of the bidding race for Warner Music Group. Napster cofounder Sean Parker was part of that club, at one point understood to be a leading bidder.  The consortium, Yucaipa Companies, has not commented on the matter.

Others may also be reflecting on the value of a billion dollars. The New York Times notes that BoA is pulling its financing for various bidders, citing issues with the price and broader music industry prospects.  It remains unclear which groups were tapping BoA funds, or what the pullback entails. Warner is currently attempting to sell the consolidated label group for a reported floor of $3 billion.

That leaves two potential buyers, though information from the Wall Street Journal suggests that one is getting antsy.  Russian billionaire Len Blavatnik – a perfect candidate for a vanity purchase – apparently wants a quicker decision, and has threatened to withdraw if the process drags too long.  The other is a private equity group controlled by LA-based brothers Tom and Alec Gores.

Warner also carries debt of roughly $2 billion, which is expected to be assumed by the front-running bids.  WMG finished the week on Wall Street at $7.47.