Warner Music Acquired By Bronfman Group for $2.6 Billion

Authored by Mark Hefflinger on November 24, 2003 - 7:08am.

London -- Time Warner on Monday confirmed that it has agreed to a $2.6 billion takeover of its Warner Music division by a consortium led by Edgar Bronfman Jr., the former Seagram CEO who engineered that company's acquisition of Universal Music Group during the 1990's. Other backers included Thomas H. Lee Partners of Boston, Providence Equity Partners and Bain Capital. "While we do not foresee an immediate upturn in the overall market for recorded music, we believe opportunities are emerging that bode well for the long-term future of the business and that Warner Music will continue to be in the forefront of capitalizing on these opportunities," said Thomas H. Lee managing director Scott M. Sperling. Earlier in the day, EMI Group announced that it had withdrawn its own $1.64 billion offer for Warner Music. Eric Nicoli, chairman of EMI Group, said: "We have concluded that it is no longer possible to reach an agreement on terms which would be acceptable to both parties and in the interests of EMI's shareholders."
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