Wednesday, February 23, 2011

Warner Music (WMG) Bids Starting to Come In

Several parties have started putting in bids for parts or all of Warner Music Group (NYSE:WMG), the world's third largest music company, sources said on Tuesday.

The bidders, who have had a preliminary review of Warner Music's books, include private equity firms, investor groups and strategic bidders like music companies.

Names that have moved ahead in the process include private equity firm KKR [KKR.UL] through its BMG Music Rights joint venture with Bertelsmann (BTGGg.F). Others include billionaire Len Blavatnik, who already owns around 2 percent of Warner Music. Vivendi's (VIV.PA) Universal Music Group and Sony Corp's (NYSE:SNE) label group Sony Music Entertainment and its song publishing joint venture Sony/ATV Publishing are also said to have moved ahead in pursuing their interest.

More official bids are expected this week.

The bids for Warner Music come even as investors are watching out for the next move from Citigroup (NYSE:C) which took control of rival music company EMI Music last month and is expected to soon put it up for sale.



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