There’s a reason why this process is dragging on-and-on.
And, why certain bidders are walking. According to one potential purchaser – who will remain unnamed – the acquisition process surrounding Warner Music Group has been a complete headache, and Warner and handler Goldman Sachs have been making it “very difficult” for interested buyers. “The level of incompetence surrounding this acquisition at all levels is staggering,” the frustrated negotiator told Digital Music News.
Indeed, that confirms a recent report that Russian billionaire Len Blavatnik was threatening to pull out if the sales process wasn’t sealed in a timely manner. It also sheds light into a process whose rules and minimum valuations seem to have shifted mid-course.
But when will this all end? Multiple sources and reports are now pointing to a sealed deal by this week, with a valuation slightly above Wall Street market value. But whether Warner will get its $3 billion demand is also a question-mark at this stage – so let the haggling continue.
Anyway, it also appears that another buyer is elbowing back into the process. Bloomberg just reported that Sony/ATV Music Publishing has tossed a late-stage bid into the ring, and information still suggests that bidders Blavatnik and the Gores brothers are actively interested.
Also, more information from sources Tuesday morning suggested that Yucaipa Companies, the consortium that included billionaires Ron Burkle and Sean Parker, is indeed out of this race.
More as it develops