According to www.FMQB.com:
The final bids are due for Warner Music Group today, and the company could reportedly be sold by week’s end. Sources tell Reuters WMG is expected to go for at least $3 billion to one of two competing groups: Len Blavatnik‘s Access Industry and a joint bid by Tom and Alec Gores‘Platinum Equity and Gores Group.
One source tells Reuters that Ron Burkle‘s Yucaipa Co dropped out of the bidding late last week, while bids from two major competing music industry companies “fell short of what Warner’s board was looking for in the second round.” Digital Music News notes that Yucaipa was the group that included Napster co-founder Sean Parker.There is still the chance that music companies such as BMG could be involved down the road by purchasing some of WMG’s assets from its new owner. Even though bids are due this week, there is no guarantee a deal will close in the coming days, according to one of Reuters‘ sources.Additionally, the Wall Street Journal reported on Friday night that Blavantnik is frustrated by the decision process and has threatened to drop out of the bidding if WMG’s board takes too long to make up its mind.
In casue you don’t understand what this means… WMG is the world’s third-largest record label behind Universal and Sony. In recent years, the company has overhauled its business model and made significant inroads in the digital music market. Digital revenue represented 40% of its recorded music revenue in the U.S., WMG said in its most recent earnings call. I wonder how this will change the way they do business after it’s sold…