That’s right. We’re back to the music business news of the world. Once I saw this in my email, I knew that I had to spread the word about one of the “Four Majors” being put on the market. The most interesting part of this story is that, Warner Music still has their eyes set on buying EMI. EMI is also one of the “Four Majors.” So with two of the Four Majors up for sale, it’s interesting and kinda confusing to think that one would buy the other before they also were bought out. Word in the business, however, is that No One is making a move on Warner until the final sale for EMI is completed.
Before I get a head of myself, the story goes like this. Warner Music hired Goldman Sachs to “explore a sale,” according to a source. “Goldman Sachs had been retained by Warner Music to explore buying the assets of EMI Group from Terra Firma.” One way they would go about this is buy selling it’s song publishing until Warner/Chappell and use those funds to buy EMI. Another group interested in this Warner/EMI deal is, surprise surprise, Sony/ATV Music Publishing. However, according to Richard Greenfield, analyst at BTIG, no one will make a move any time soon. “We believe there is a low likelihood of anyone stepping in to buy Warner Music ahead of the EMI auction that is looming later this year.”Another group interested in possibly buying Warner is firm Kohlberg Kravis Roberts. Apparently, in recent months, the firm has approached Warner about buying the company. Come to find out that KKR has also been in talks about engineering a joint bid for EMI.
In other words, EMI is the monkey in the middle and Warner Music and KKR are following the ball. I don’t know about y’all but there are so many things about this that seem just a little illegal. On top of everything, CEO of Warner Music is being fined and could possibly do some jail time for misconduct, false or misleading information, and manipulating stock prices. Wow… there’s nothing reassuring about that.