dChan - Q Origins Project Archive

>>811379 2/2

Bronfman Turkey WL

happenings

>Podesta emails from 2008- Looking for $$$ from Bronfman

dunno what happened there..Pay or no pay??

>2011 loses out in EMI deal

>Wikileaks Global Intelligence Files 2013

Bronfman fined almost $7million

https:// wikileaks.org/gifiles/docs/93/933644_wsj-news-alert-court-fines-warner-music-ceo-edgar-bronfman-6.html

11/11/11

UPDATE 5-EMI sale ends 80 years of independence

Reuters Staff

8 Min Read

EMI sold in two pieces for $4.1 billion
Universal gets recorded music, Sony music publishing
Both buyers face significant regulatory hurdles
Warner Music, BMG trumped at the 11th hour (Adds comments, deal details, background throughout)

By Peter Lauria

NEW YORK, Nov 11 (Reuters) - EMI, the London-based record label that for 80 years brought the world everyone from the Beatles and Queen to Coldplay and Katy Perry, is no longer independent.

The company was chopped up and sold in pieces Friday, with Vivendi’s (VIV.PA) Universal Music Group winning EMI’s recorded music auction with a $1.9 billion offer. A consortium led by Japan’s Sony (SNE.N) (6758.T) is expected to announce later on Friday that it won the auction for EMI’s music publishing operations in a deal valued at $2.2 billion, according to numerous sources involved in the process.

Both companies were victorious, coming from behind in the auction’s final week after nearly five months of intense negotiations, trumping bids by archrivals Warner Music Group and BMG.

For EMI owner Citigroup Inc (C.N), which took control of the record label after its previous owner, Guy Hands’ buyout shop Terra Firma, defaulted on loans owed to the investment bank, the better-than-expected $4.1 billion in total deal value approaches the break-even level, something few observers thought possible.

Citigroup provided 2.6 billion pounds ($4.2 billion) of debt to Terra Firma’s 2007 leveraged buyout of EMI but had to write off most of the loans as a result of the company’s struggles.

Citigroup declined to comment on the matter.

WARNER WALKS, SONY RISES

Warner Music led the bidding on the recorded music side for much of the auction, while KKR-backed (KKR.N) BMG was ahead on the song catalog side. But in a surprise move, Warner Music rescinded its bid last week after failing to agree to terms for taking over EMI’s pension liabilities.

Warner’s exit opened the door for Universal to return to the negotiating table after previously dropping out of the auction for the very same reason. Under the deal’s terms, Universal assumes the regulatory risk — and getting the deal approved won’t be easy — while Citigroup retains all of EMI’s roughly $600 million in pension liabilities and any potential liability from lawsuits related to Terra Firma’s ownership.

The $1.9 billion price equates to a cash flow multiple of 7 times, which is roughly in line with the 7.3 times cash flow multiple Len Blavatnik paid in his $3.3 billion deal for Warner Music in July. Cost synergies are expected to lower the cash flow multiple to 5 times, said a source.

On the publishing side, Sony lined up Blackstone Group, Abu Dhabi’s Mubadala Development Co, and Raine Group as financing partners. But what really put its offer over the top was a last-minute assist from investment bank UBS, which agreed to provide it with more than $1 billion in financing, according to two sources involved in the deal. Billionaire music and movie mogul David Geffen also invested $50 million in mezzanine debt to help Sony finance the deal, said a third source with knowledge of the situation. Those two late investments allowed Sony to raise its offer and trump BMG.

https:// www.reuters.com/article/emi/update-5-emi-sale-ends-80-years-of-independence-idUSL5E7MB2E320111111