Bertelsmann CFO confirms BMG’s acquisition intent
By CMU Editorial | Published on Wednesday 30 March 2011
Not that I think we needed it, but the CFO of BMG co-owners Bertelsmann has provided us with confirmation that the music rights business is still in an acquisitive mood, and is interested in both Warner Music and EMI’s catalogues and businesses.
Thomas Rabe spoke to investment types yesterday, confirming the wider Bertelsmann group had now reduced and restructured its debts following a period of cost saving, and was now ready to expand its various businesses through acquisition. And that included the new incarnation of BMG, their joint venture with equity group KKR.
Rabe admitted that BMG was looking at a possible acquisition of some or all of Warner Music, and added that it’d likely be bidding for EMI once Citigroup properly put it up for sale. He said he wanted BMG to become one of the leading music-rights companies worldwide in the “medium term”.
As previously reported, insiders at Warner have said that BMG’s bid is unlikely to be successful because the major’s current owners and bankers believe the German firm’s offer price is too low given the amount of interest in buying the Warner Music company.