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CAA investor bidding for EMI

By | Published on Thursday 18 August 2011

EMI

Well look at that, someone bidding for EMI who didn’t make a carbon copy bid for Warner Music earlier this year. According to the New York Post, private equity group TPG Capital is bidding to buy the music major, which current owner Citigroup is in the process of selling, of course.

TPG have already made moves into the entertainment space, taking a 35% stake in the Creative Artists Agency, and setting up a $500 million fund to buy into other entertainment businesses.

CAA is not the only private equity group bidding for EMI, despite the disastrous outcome of private equity firm Terra Firma’s acquisition of the music company back in 2007.

Although said groups would normally bid high in such takeover races, posing considerable competition for the more traditional entertainment firms interested in expanding through acquisition, some do wonder whether private equity outfits can really raise the required finance for a multi-billion pound deal in an uncertain industry in the current economic climate.

Citigroup is reportedly in talks with various bidders as we speak, including those who have only bid for one half of the company.


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