Tags: Warner Music Looks for Potential Buyers | Hires Goldman

Warner Music Looks for Potential Buyers, Hires Goldman

Friday, 21 Jan 2011 09:15 AM

Warner Music Group, the world's No. 3 music company, is looking for potential buyers and Goldman Sachs is advising on the process, a source familiar with the matter said Thursday.

Some parties have expressed interest in the music group, said the source, who asked not to be named because the process is not public.

The New York Times reported that the decision to hire Goldman came after a number of potential buyers, including private equity firm Kohlberg Kravis Roberts approached Warner Music's management to express interest in acquiring the company.

Goldman Sachs and Warner Music declined to comment.

Warner has long been speculated to be the natural partner for British record firm EMI's recording assets.

EMI, owned by Terra Firma, is struggling under a mountain of debt after being bought in a 4 billion pound ($6.2 billion) buyout in 2007 by the British private equity firm.

The New York Times reported that a separate set of bankers in Goldman has been working on a potential acquisition of EMI by Warner.

Warner in November posted a wider quarterly loss as revenue growth in Britain and Italy was offset by weakness in the United States, Japan and the rest of Europe, sending its shares down 8 percent.

Chief Executive Edgar Bronfman said at the time that despite the challenges he remains confident that the music industry will turn the corner and soon start to benefit from years of restructuring and cost-cutting.

The company is home to recording legends such as Ray Charles, Fleetwood Mac and The Bee Gees and current stars like Green Day and Death Cab for Cutie.

© 2017 Thomson/Reuters. All rights reserved.

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Warner Music Group, the world's No. 3 music company, is looking for potential buyers and Goldman Sachs is advising on the process, a source familiar with the matter said Thursday. Some parties have expressed interest in the music group, said the source, who asked not to be...
Warner Music Looks for Potential Buyers,Hires Goldman
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2011-15-21
 

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