Warner Music Group Could be Sold by End of Week: Sources (WMG)

Warner Music Group

is on the block, according to people familiar with the matter, and could be sold for as much as $3 billion as early as this week. The third round of bids is currently being led by Len Blavatnik's Access Industry and a joint bid by Tom and Alec Gores' Platinum Equity and Gores Group, according to two people. Warner Music Group Corp. is a music content company. The company consists of Recorded Music and Music Publishing. A Reuters report notes that "The Warner Music sale process is taking place against a backdrop of ongoing declines in music sales as executives struggle to figure out new business models to guarantee the future of the industry. While Warner Music continues to generate reasonable levels of cash on its balance sheet -- a key metric for investors -- it will still be seen as a risky investment in a very tough market." Warner has been the target of acquisition rumors throughout 2011. According to the Reuters report, "Warner Music's board effectively put itself up for sale in January when it appointed Goldman Sachs and AGM Partners to assess interest from external parties. Since then its shares have risen nearly 60 percent to $7.47 at the end last week." Tech blog CNet noted last week that "Apple

and Warner Music Group have reached an agreement to allow WMG artists' music to be used by the cloud service."