{"id":759,"date":"2011-05-06T19:21:15","date_gmt":"2011-05-06T19:21:15","guid":{"rendered":"http:\/\/skylight.gr\/administrator_wordpress\/index.php\/2011\/05\/06\/access-industries-to-acquire-warner-music-group\/"},"modified":"2011-05-06T19:21:15","modified_gmt":"2011-05-06T19:21:15","slug":"access-industries-to-acquire-warner-music-group","status":"publish","type":"post","link":"https:\/\/skylight.gr\/index.php\/2011\/05\/06\/access-industries-to-acquire-warner-music-group\/","title":{"rendered":"It’s official, the new owner of Warner Music Group is Russian billionaire Len Blavatnik and his Access Industries."},"content":{"rendered":"


The purchase price of $3.3 billion in cash or $8.25 per share represents a 34.4% premium over the volume-weighted 6 month average share price of $6.14. Some observers expect the investor to next take a run at EMI<\/strong> and combine the two companies.\u00a0<\/p>\n

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<\/a><\/p>\n

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Following the closing of the transaction, WMG will become a privately held company and its stock will no longer be traded on the New York Stock Exchange. In addition to stockholder approval, the transaction is subject to the satisfaction of customary closing conditions and regulatory approvals.\u00a0 It is anticipated that the transaction will be completed in the third calendar quarter of this year.<\/p>\n

Blavatnik had a seat on the WMG board for 4 years and already owned2% of the company. Born in 1957 in Moscow, Blavatnik currently lives in New York and London. By some measures, he is the world\u2019s 80th wealthiest man. Forbes estimates his fortune at $10.1 billion.<\/p>\n

Most of his wealth comes fron his Access Industries<\/span><\/span><\/a>, which is a part owner in AAR, a group of Russian oligarchs (Blavatnik reportedly hates the term) that owns 50% of energy giant TNK-BP. The other half is owned by BP.<\/p>\n

Official Press Release<\/span><\/strong><\/p>\n

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ACCESS INDUSTRIES TO ACQUIRE WARNER MUSIC GROUP<\/p>\n

In $3.3 Billion All-Cash Transaction<\/p>\n

NEW YORK, May 6, 2011 \u2013<\/strong> Warner Music Group Corp. (NYSE: WMG) and Access Industries, the U.S.-based industrial group, today announced the execution of a definitive merger agreement under which Access Industries will acquire WMG in an all-cash transaction valued at $3.3 billion.\u00a0 The purchase includes WMG\u2019s entire recorded music and music publishing businesses.<\/p>\n<\/p><\/div>\n

<\/a> <\/p>\n

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The purchase price of $8.25 per share represents a 34.4% premium over the volume-weighted average share price of $6.14 over the previous six months.<\/p>\n

Under the terms of the merger agreement, WMG\u2019s stockholders will receive $8.25 per share in cash at the closing of the transaction.\u00a0 WMG\u2019s Board of Directors approved the transaction and recommended that WMG\u2019s stockholders approve the transaction.\u00a0 In addition to stockholder approval, the transaction is subject to the satisfaction of customary closing conditions and regulatory approvals.\u00a0 It is anticipated that the transaction will be completed in the third calendar quarter of this year.\u00a0<\/p>\n

WMG\u2019s Chairman and CEO, Edgar Bronfman, Jr., said, \u201cWe 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.\u00a0 We are delighted that Access will be the new steward of this outstanding business.\u00a0 They are supportive of the company\u2019s vision, growth strategy and artists, while bringing a fresh entrepreneurial perspective and expertise in technology and media.\u00a0 Most importantly, Access supports Warner Music\u2019s commitment to our recording artists and songwriters who are the foundation of our current and future success.\u201d<\/p>\n

Len Blavatnik, Chairman and founder of Access Industries, said, \u201cI am excited to extend my longstanding involvement with\u00a0Warner Music. \u00a0It is a great company with a strong heritage and home to many exceptional artists.\u00a0 I look forward to working closely with the many talented people within the company.\u201d\u00a0<\/p>\n

Jorg Mohaupt, Head of Media at Access Industries, added, \u201cThe music industry is at an inflection point where digital adoption is rapidly gaining momentum.\u00a0 Warner Music, as one of the most progressive forces in the music business, is well positioned to capture this opportunity for music creation and distribution.\u201d<\/p>\n

Scott Sperling, Presiding Director of WMG, said, \u201cIt has been our great pleasure working with the extraordinary team at Warner Music over these past seven years.\u00a0 The company has managed to significantly increase market share and profitability during our ownership period and consistently outperformed even during a challenging period for the industry. Len Blavatnik and Access are likewise deeply committed to the music business and we know that we will be leaving the company in good hands.\u201d<\/p>\n

Following the closing of the transaction, WMG will become a privately held company and its stock will no longer be traded on the New York Stock Exchange.\u00a0 The company will retain the Warner Music Group name and will continue to operate out of its current facilities.\u00a0\u00a0<\/p>\n

Thomas H. Lee Partners L.P. and its affiliates, Bain Capital Partners, LLC and its affiliates, and Edgar Bronfman, Jr., who together hold approximately 56% of the company\u2019s outstanding shares, have entered into a voting agreement with Access under which those stockholders have agreed to vote their shares in favor of the merger.\u00a0<\/p>\n

Access has secured committed financing from Credit Suisse and UBS Investment Bank.\u00a0 These funds, in addition to equity financing from Access, will finance the cash consideration to WMG\u2019s stockholders.<\/p>\n

Goldman, Sachs & Co. and AGM Partners LLC acted as financial advisors to WMG, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as the company\u2019s legal advisors.\u00a0 Credit Suisse and UBS Investment Bank acted as financial advisors to Access, and Debevoise & Plimpton LLP acted as Access\u2019 legal advisors.<\/p>\n

Quarterly Results Announcement<\/p>\n

WMG noted that with the proposed transaction, it will not host a conference call to discuss results for the second quarter of fiscal 2011.\u00a0 The company expects to file its Quarterly Report on Form 10-Q for the period ended March 31, 2011 by May 10, 2011.<\/p>\n

Additional Information and Where to Find It<\/p>\n

In connection with the proposed transaction, WMG intends to file relevant materials with the SEC, including a proxy statement.\u00a0 INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THESE DOCUMENTS (IF AND WHEN THEY BECOME AVAILABLE) AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT WMG, THE PROPOSED TRANSACTION AND RELATED MATTERS. <\/strong>\u00a0Investors and security holders may obtain these documents (and any other documents filed by WMG with the SEC) free of charge at the SEC\u2019s website at http:\/\/www.sec.gov<\/span><\/a>.\u00a0 In addition, the documents filed with the SEC may be obtained free of charge by directing such requests to WMG\u2019s Investor Relations department at 212-275-2000, or by visiting the Investor Relations portion of WMG\u2019s website at investors.wmg.com.\u00a0 Investors and security holders are urged to read the proxy statement and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed merger.<\/p>\n

Participants in Solicitation<\/p>\n

WMG and its directors, executive officers and certain other members of WMG\u2019s management may be deemed to be participants in the solicitation of proxies from WMG\u2019s stockholders with respect to the proposed transaction.\u00a0 Information about WMG\u2019s directors, executive officers and members of management is contained in WMG\u2019s most recent proxy statement and annual report on Form 10-K.\u00a0 Stockholders may obtain additional information about the directors and executive officers of WMG and their respective interests with respect to the proposed transaction by security holdings or otherwise, which may be different than those of WMG\u2019s stockholders generally, by reading the definitive proxy statement and other relevant documents regarding the proposed merger, when filed with the SEC.\u00a0 Each of these documents is, or will be, available as described above.<\/p>\n

\u201cSafe Harbor\u201d Statement under Private Securities Litigation Reform Act of 1995<\/p>\n

This communication includes forward-looking statements that reflect the current views of WMG about future events and financial performance. Words such as \u201cestimates,\u201d \u201cexpects,\u201d \u201canticipates,\u201d \u201cprojects,\u201d \u201cplans,\u201d \u201cintends,\u201d \u201cbelieves,\u201d \u201cforecasts\u201d and variations of such words or similar expressions that predict or indicate future events or trends, or that do not relate to historical matters, identify forward-looking statements.\u00a0 All forward-looking statements are made as of today, and we disclaim any duty to update such statements.\u00a0 Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them.\u00a0 However, we cannot assure you that management\u2019s expectations, beliefs and projections will result or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations.\u00a0 Please refer to our Form 10-K, Form 10-Qs and our other filings with the U.S. Securities and Exchange Commission concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.<\/p>\n

About Access Industries<\/strong><\/p>\n

Access Industries is a privately held, U.S.-based industrial group with long-term holdings worldwide. Access was founded in 1986 by its Chairman, Len Blavatnik, an American industrialist. Access’ industrial focus spans three key sectors: natural resources and chemicals; telecommunications and media; and real estate. (www.accessindustries.com<\/span><\/a>).<\/p>\n

Access Industries\u2019 holdings in the digital media sector currently include significant stakes in Perform Group (the online sports broadcaster), Acision (the leading mobile broadband and value added services provider), ICEnet (mobile broadband services provider in Scandinavia), ViKi (the international video site, translating the best of TV and movies into over 150 languages) and Mendeley Research Networks (the social Web application for sharing research papers, discovering research data and collaborating).<\/p>\n

About Warner Music Group<\/strong><\/p>\n

Warner Music Group became the only stand-alone music company to be publicly traded in the United States in May 2005.\u00a0 With its broad roster of new stars and legendary artists, Warner Music Group is home to a collection of the best-known record labels in the music industry including Asylum, Atlantic, Cordless, East West, Elektra, Nonesuch, Reprise, Rhino, Roadrunner, Rykodisc, Sire, Warner Bros. and Word.\u00a0 Warner Music International, a leading company in national and international repertoire, operates through numerous international affiliates and licensees in more than 50 countries.\u00a0 Warner Music Group also includes Warner\/Chappell Music, one of the world’s leading music publishers, with a catalog of more than one million copyrights worldwide.\u00a0<\/p>\n

A Look At The Man Who Is Buying Warner Music: Russian Billionaire Len Blavatnik
<\/p>\n

<\/strong><\/span>According to multiple sources, Russian born billionaire Len Blavatnik and his Access Industries\u00a0 are the front runners to buy the Warner Music Group.\u00a0 The deal, worth a reported $3 billion, could close as early as Friday.\u00a0 But who is Len Blavatnik and what clues can we find about how he might run one of the world’s four remaining major music groups?\u00a0 First and foremost, it’s important to understand that he is no stranger to WMG or its CEO Edgar Bronfman Jr.<\/a><\/p>\n

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Blavatnik has had a seat on the WMG board for 4 years. He also bought Bronfman’s Upper East Side town house in 2007 for about $50 million, a sale said to have been one of the most expensive housing deals ever in Manhattan. In fact, Blavatnik has a history of paying top dollar for things he wants.\u00a0 Whether that will translate to bidding for artists is anyone’s guess.<\/p>\n

Born June 14, 1957 in Moscow , Blavatnik currently lived in New York and London. By some measures he is the world\u2019s 80th wealthiest man. Forbes estimates his fortune at $10.1 billion.<\/p>\n

Most of his wealth comes fron his Access Industries<\/span><\/a>, which is a part owner in AAR, a group of Russian oligarchs (Blavatnik reportedly hates the term) that owns 50% of energy giant TNK-BP. The other half is owned by BP.<\/p>\n

The good news, according to the Guardian<\/span><\/a>, is that Blavatnik doesn’t want to overload Warner Music with more debt. He’ll reportedly assume WMG’s already hefty $2 billion in loans and write an equity check of another $1 billion plus.<\/p>\n

Many observers believe that Blavatnik’s next move will be a run at purchasing EMI from Citi.<\/p>\n

Source: Hyperbot<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

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