Warner Music Group said Monday that it may take another run at struggling music company EMI, which last month agreed to be acquired by private equity group Terra Firma in a $4.7 billion deal.
Manhattan-based Warner and London-based EMI have flirted with a transatlantic partnership for seven years. Earlier this year, EMI rejected a $4.1 billion offer from Warner. That bid came after both companies each offered about $4.6 billion to acquire the other.
A fresh offer from Warner could come within the next couple of weeks, said a source close to the situation. However, Warner has other options aside from making an outright bid. The company could wait until the deal with Terra Firma closes and then make a deal with Terra for EMI’s recorded music business. Warner could also just walk away.
“This announcement does not amount to a firm intention to make an offer or pre-conditional offer and according there can be no certainty that any offer or pre-conditional offer will be made,” said Warner in a statement. Company officials declined to comment beyond the statement.
EMI's roster of recording talent includes British rock band Coldplay, Janet Jackson, The Rolling Stones and hip hop producer and rapper Pharrell Williams. Warner Music's roster includes Phil Collins, Madonna, reggae star Sean Paul, as well as the Bad Boy music label founded by Sean "P. Diddy" Combs.
Source: Various
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