(Hypebot) — Warner Music Group announced on Saturday that it would not bid for independent music conglomerate Believe. No specific reason was given for the shift, but two weeks ago, WMG was granted access to Believe’s financial data to guide its bid.
A sale to WMG also likely faced regulatory hurdles after several independent music trade groups opposed the sale to a major music company.
Believe responded to the decision in a separate statement and would now “determine next steps in relation to the possible evolution of the company’s control.”
Believe CEO and founder Denis Ladegaillerie had earlier announced his own bid to buy the company back as part of a consortium including EQT and TCV.
The full WMG statement
April 6, 2024 – Warner Music Group Corp. (“WMG”) announced today that, after careful consideration, it has decided not to submit a binding offer for Believe. WMG thanks the Ad Hoc Committee and Believe’s leadership team for their time and cooperation, and wishes the company every success in future.
The full Believe statement
Paris, 6 April 2024 –The Ad-Hoc Committee of Believe has taken note of Warner Music Group’s decision not to submit a binding offer for a combination with Believe (“WMG”), as set out in Warner Music Group’s press release of earlier today.
The Ad-Hoc Committee will review the situation with all interested parties (including the Consortium composed of EQT, TCV, and Mr Denis Ladegaillerie, as well as the historical shareholders of Believe) to determine next steps in relation to the possible evolution ofthe Company’s control and will inform the market accordingly.
