WMG Sold For $3.3 Billion

Digital Music News and the Los Angeles Times report that Warner Music Group has agreed to be purchased by Len Blavatnik’s Access Industries for approximately $3.3 billion. Included in the “merger agreement” are both recording and publishing divisions plus Access Industries will assume WMG debt of approximately $2 billion.
The purchase price calculates to about $8.25 per share, slightly higher than yesterday’s closing price of $7.90. The deal still must be approved by WMG shareholders which is expected to take place. Analysts expect the deal might close sometime during the 3rd quarter.
“We believe this transaction is an exceptional value-maximizing opportunity that serves the best interests of stockholders as well as the best interests of music fans, our recording artists and songwriters, and the wonderful people of this company,” said WMG chairman and CEO Edgar Bronfman, Jr. “We are delighted that Access will be the new steward of this outstanding business.”
Unlike some of the larger music companies that bid for Warners, Blavatnik’s offer had the bonus of being able to steer clear of any regulatory hurdles. With the WMG deal done, the possibility exists that Access Industries will now go after EMI’s music and publishing assets.