So far, the two competing bids are coming from Len Blavatnik's Access Industry and a joint bid by Tom and Alec Gores' Platinum Equity and Gores Group.
Warner says two major labels (BMG and Sony) were bidding, as well, but "fell short of what Warner's board was looking for from strategic buyers." It appears that Warner wants a premium from labels as the transaction will take much longer to complete, given anti-trust review.
With all that being said, insiders are still skeptical that an actual deal will be completed.
Warner put itself up for sale in January, following years of declining music sales.
"The key issues for Warner Music's board are price and simplicity of the transaction process," say the sources.
Warner has $1.9 billion in debt, and is only expected to make $333 million in income before interest, depreciation and amortization, for the fiscal 2012.
The winner of the auction is also likely to bid on EMI after, using the purchases of both companies to lower costs.
Written by: Andre Yoskowitz @ 2 May 2011 0:09
