(Hypebot) — Warner Music Group (WMG) has confirmed its intention to acquire independent music powerhouse Believe for $1.8 billion, a price greater than a recent bid from a consortium led by Believe founder Denis Ladegaillerie.
The France-based independent music conglomerate includes Believe, DIY distributor TuneCore, and record labels Nuclear Blast, Naïve Groove Attack, Play Two, and AllPoints. Believe SA trades on the Euronext Paris exchange, and WMG’s offer prices “BLV” shares at €17/$18.52 USD.
If the deal is completed, it would mean that ownership of one of the largest independent music companies shifts to Major label status.
With an eye towards wooing shareholders, WMG is calling the bid by the consortium formed by EQT, TCV, and Ladegaillerie “a purely financial transaction” compared to its own, which it says will provide Believe with strategic support, financial stability, and more opportunities for global expansion.
At €17/$18.52 USD per share, the WMG offer is also financially superior to the consortium’s €15/$16.35 USD per share bid. “Although no decision has been taken at this stage, the Transaction could be for cash only, without WMG excluding the possibility of a share component, and without any financing conditions,” says WMG.
WMG says it is now awaiting the due diligence information requested on February 27, 2024, before submitting a formal proposal.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
