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Sony/ATV Said to Submit Takeover Offer for Warner Music

marc_vivien

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Sony/ATV Said to Submit Takeover Offer for Warner Music
May 03, 2011, 1:53 PM EDT
MORE FROM BUSINESSWEEK

http://www.businessweek.com/news/20...o-submit-takeover-offer-for-warner-music.html

By Cristina Alesci and Andy Fixmer
(Updates with today’s share price in fifth paragraph.)

May 3 (Bloomberg) -- Sony/ATV Music Publishing LLC, owned by Sony Corp. and Michael Jackson’s estate, submitted a bid for Warner Music Group Corp. ahead of yesterday’s deadline, two people with knowledge of the auction said.

Sony/ATV is working with billionaire Ronald Perelman and Guggenheim Partners LLC, said the people, who weren’t authorized to talk publicly. Warner Music yesterday called a board meeting with the aim of picking a buyer in 48 hours.

Sony/ATV’s entry increases the number of known bidders to three after billionaire investor Ron Burkle decided to walk away last week. Len Blavatnik, a former Warner Music director, and brothers Tom and Alec Gores also submitted bids ahead of the deadline, people familiar with the offers said yesterday.

Will Tanous, a spokesman for New York-based Warner Music, and Liz Young, a spokeswoman for Sony Music in New York, had no comment. Christine Taylor, a spokeswoman for Perelman’s MacAndrews & Forbes in New York, didn’t immediately respond to requests for comment. Jeffrey Kelley, a spokesman for Guggenheim in Chicago, couldn’t be reached immediately.

Warner Music, which began seeking offers in January, fell 8 cents to $7.33 at 1:44 p.m. in New York Stock Exchange composite trading. The stock had climbed 31 percent this year before today.

The record company, home to artists including Cee Lo Green and the Black Keys, has long-term debt of $1.94 billion, according to company filings.

Eight of Warner Music’s 13 directors are executives of Thomas H. Lee Partners LP and Bain Capital LLC, two Boston-based private-equity firms that together hold 51 percent of the company’s shares, according to data compiled by Bloomberg. Providence Equity Partners owns 8.3 percent and Chairman and Chief Executive Officer Edgar Bronfman Jr. owns about 7 percent.

--Editors: Rob Golum, Anthony Palazzo

http://www.businessweek.com/news/20...o-submit-takeover-offer-for-warner-music.html
 
That good news for SonyATV to add this to the catalog if they win the bid
 
What will this mean for The Estate ? - They own MJ's part of sony right?
 
Hess said:
What will this mean for The Estate ? - They own MJ's part of sony right?
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The Sony/ATV-catalog is a joint-venture between Sony and the MJ-Estate. Both own 50% percent of the Sony/ATV-catalog.
When they buy Warner Music Group the Sony/ATV becomes more worth and more powerful. It is also a big invistation from both sides.

It has nothing to to with MJ`S MIJAC-catalog. The Estate owns the MIJAC-catolog 100%.
 
billionaire investor Ron Burkle decided to walk away last week.

...ok... Ron Burkle, that Ron who got millions for MJ and Neverand and was behind the loans worth the hundreds of millions of dollars???
 
Moonwalker.Fan said:
billionaire investor Ron Burkle decided to walk away last week.

...ok... Ron Burkle, that Ron who got millions for MJ and Neverand and was behind the loans worth the hundreds of millions of dollars???
Click to expand...

it's not him. But I'm sure you are referring to Tom Barrack.
 
No surprise here, Warner has been going down the drain for some time now
 
passy001;3371891 said:
it's not him. But I'm sure you are referring to Tom Barrack.
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No, read this (the article has many fundamental mistakes, as usual), of course, there are many articles regarding so.called debts and financial problems:

http://today.msnbc.msn.com/id/8149929/ns/today-entertainment/
Jackson’s finances continue to dwindle




The prospect of selling his stake in the catalog has split Jackson's advisers. In recent months, some urged him to rid himself of debt by selling part or even all of his music publishing holdings, said the Rev. Jesse Jackson, who has advised the entertainer on personal matters. Michael Jackson also sought financial advice from longtime friend and Los Angeles billionaire Ron Burkle, who suggested he hold on to the catalog, according to a source close to the situation who spoke on the condition of anonymity.


In April, the pop star faced the possibility of losing the catalog to foreclosure when he was a day late making a full $3 million payment to Bank of America, said the Rev. Jackson, who met with the president of the bank on behalf of the singer.
The move, combined with efforts by Burkle, "worked out well and Michael no longer has a cash flow problem," the Rev. Jackson said. "It was really unnecessary for any kind of a foreclosure. But if the foreclosure had taken place, it would have had an impact on Michael's catalog. His whole financial empire would come crumbling down."
Click to expand...
 
Yes ron burkle who told mj to not sell the cat when randy was forcing his hand during the trial
 
I am glad Michael listened to people who knew what they were talking about and not sold anything.
 
If they get the catalog doesn't it mean that The Estate will be administrating it's own catalog since Warner Music will now be under Sony/ATV? Or am I thinking something different?
 
booker said:
If they get the catalog doesn't it mean that The Estate will be administrating it's own catalog since Warner Music will now be under Sony/ATV? Or am I thinking something different?
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Yes you are right that Warner administers Michael's catalogue, but I seem to remember there was some opportunity for the estate to repatriate the administration of Michael's catalogue in any case. I did a search but can't find the thread.
 
Annie123;3372141 said:
Yes you are right that Warner administers Michael's catalogue, but I seem to remember there was some opportunity for the estate to repatriate the administration of Michael's catalogue in any case. I did a search but can't find the thread.
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Michael`s catolog is no longer adminstrated by Warner. The administration is by Sony/ATV.

The Estate has given a statement for a few month to this theme:

------ Forwarded Message
From: John Branca
Date: Mon, 21 Feb 2011 15:18:31 -0600
To: Jeff *****
Subject: Michael Jackson/Mijac

Jeff:


I understand that you are being asked a lot of questions about Mijac.

Yes, there is a matching right that Michael granted to Sony/ATV but they only get to administer the catalog for a limited term AND only if they agree to unprecedented favorable terms. We will not relinquish ultimate control and ownership to anyone. We have favorably refinanced the loans on Mijac which will be paid off and the catalog WILL absolutely be passed to Michael's children as long as we have anything to say about it.

Sony/ATV is a great company and the Estate owns half of it but no one, not even Sony/ATV, will ever own Mijac while John McClain and I remain in charge.

The current Sony team is the one Michael chose to work with on the Thriller 25 release and they are good partners. As stated in the recent court filings, they worked with us to refinance the burdensome debt that had been placed on Michael's interest in Sony/ATV to very favorable terms, an important achievement which insures that Mijac and Michael’s masters remain secure for the benefit of Michael's children for years to come.

I would appreciate your sharing this with the fans that are asking questions.

Thanks – John
 
I will never understand why Mike sold 50% of his ATV catalogue to $ONY...
 
^^^

To refinance his loans wasn't it?
 
Diplomate said:
I will never understand why Mike sold 50% of his ATV catalogue to $ONY...
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Michael never sold 50% of his catalogue because of any debts, loans, or financial problems!!!

Michael as the owner of 100% of Associated TeleVision (ATV) Publishing wasnt able to administer and develop the company on his own - as "a music mogul" without a powerul partner.

In 1990 Michael signed (with Sony Music) the record deal valued at 1 billion dollars for 16 years and a part of the deal was merging the ATV catalog and Sony corp. creating SONY/ATV!
In 1995 the merging was done as the official business deal and Michael and Sony became business associates and both sides had the identical 50% share.
Of course, Sony paid Michael the adequate sum of money from the market price of ATV P. at that time - 1995!

At that time there was no debt or loan as a reason to sell any part of the ATV catalog.

After Michael's acquisition of ATV Music Publishing, his record label, CBS, were negotiating the sale of their record division in an unrelated deal. Following hurriedly arranged meetings and disagreements over the selling price, a deal was sealed by Michael during a concert in Tokyo.
Upon seeing the success of this sale, Japanese corporation Sony sought to break away from its core business of hardware manufacturing and diversify into music, films and games.
Looking for further opportunities, the company aimed to expand its music publishing interests.
The Japanese corporation offered Jackson $90 million for 50% of ATV Music Publishing in 1995. Michael accepted; Michael's own songs were not included in the deal.

(at least) Since 2000 Sony/ATV have invested over 650 mill. dollars in buying several music catalogs and Sony/ATV became the third largest music publisher in the world.
The catalog consists of over 700 thousand songs... including The Beatles, Elvis Presley, Eminem, Bjork, Lagy Gaga, Bieber.... and many many other contemporary artists... and maybe more will have... with Warner Music.


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Details: Sony/ATV Music Publishing: Facts, Discussion Forum, and Encyclopedia Article
 
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More (I´d say misleading) info about Sony/ATV

THE MEDIA BUSINESS; EMI to Pay Michael Jackson $70 Million to Manage Music
By ANDREA ADELSON

Published: November 25, 1993

The pop singer Michael Jackson said through his lawyer yesterday that EMI Music Publishing would begin managing his 6,000-title music catalogue, which includes most early Beatles hits, in a deal being described as the most lucrative in music publishing.

Mr. Jackson will receive $70 million in advance against revenue that EMI expected to generate managing the publishing rights to ATV Music. The catalogue, acquired by Mr. Jackson in 1985 for $47.5 million, includes the classic Lennon-McCartney Beatles compositions, as well as songs from Little Richard, Elvis Presley and the Pointer Sisters.

Total revenue over the deal's five-year term is estimated to be $150 million, said Martin N. Bandier, president of EMI Music Publishing, which controls 900,000 songs in its own catalogues. Financing for Acquisitions

As part of the deal, EMI had agreed to provide financing for acquisitions of other music catalogues in a partnership arrangement, in which EMI and the singer would share future ownership.

Such an arrangement increased the value of the deal, making it the largest in music publishing, according to John Branca, Mr. Jackson's lawyer.
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********************

MICHAEL JACKSON SELLS RIGHTS TO BEATLES SONGS TO SONY
AP
Published: November 08, 1995


Michael Jackson, the singer, sold the music publishing rights to about 250 Beatles songs yesterday to the Sony Corporation for $95 million. A new publishing venture will combine Sony's music publishing division with Mr. Jackson's ATV Music catalogue to create a business valued at $500 million. In addition to the Beatles songs, Mr. Jackson's catalogue includes songs performed by Elvis Presley and Little Richard. Publishing rights to Mr. Jackson's own songs were not included in the deal. A spokesman for Mr. Jackson did not return a telephone call seeking comment. He bought ATV in 1985 for about $47.5 million.
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Yes thanks.

But still, 50% is too much for $ONY. It would have been better to always keep the majority, like 70% per example...
 
Mike did not have the money to maintain and buy new music, hace the partnership with Sony. Which was a wise move,
It was a positive move and it is paying of.
 
I blame the media for misleading fans. Many still think Michael sold 50% of ATV to Sony. The fact is that Michael became a 50% owner of songs in the Sony publishing company that he didnt originally owned. The merger of ATV and Sony created one of the biggest music publishing companies.
 
The media manipulate this so much. The merger was beneficial to Michael in the fact he owned 50% of Sony's entire catalogue-now that's a great move.
 
Ah ok, so now I understand everything :lol:

Yes a great great move for Mike and his kids now.

I know why he didn't want to sell his catalogue, great man, he saw the futur...

And I'm sure now, that the m*r*n Randy doesn't have brain :lol:
 
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