Liberty Media in Talks for a "Significant Stake" in CAA

Will Liberty Media achieve buying a “vital stake” in CAA?

After three years talks, Liberty Media’s SiriusXM lastly acquired Pandora Media final September.

The $three.5 billion all-stock deal values Pandora at $10.14.  Pandora’s inventory worth at present sits at $eight.53.

That isn’t the one transfer Liberty Media has needed to make.

Last November, CEO Greg Maffei confirmed he would “completely” think about buying a stake in Universal Music Group (UMG).

Speaking at an investor’s convention, he defined that an funding in UMG would make logical sense.

Several days in the past, Deutsche Bank valued UMG at $33.three billion, larger than Vivendi, its mother or father firm.  The French conglomerate has lengthy floated the thought promoting as much as a 50% stake in UMG.

Then, final December, a report revealed Maffei and his group have ready for negotiations with iHeartMedia’s collectors.  They goal to accumulate a complete stake 35% the standard broadcaster, giving them a majority share as soon as iHeartMedia exits chapter.

Now, the corporate has reportedly gone after one Hollywood’s strongest leisure companies.

Liberty Media’s Got Talent?

According to the Financial Times, Liberty Media stays in talks to spend money on Creative Arts Agency (CAA).  The latter represents artists together with Lady Gaga, Ed Sheeran, and Kanye West, and sports activities stars together with Cristiano Ronaldo.

Liberty Media and CAA are at present companions on Formula 1.  The former employed CAA to deal with sponsorship gross sales in April 2017.

A big funding within the expertise company, writes FT, would give Liberty “higher negotiating leverage for its different companies — particularly Formula One.”  Liberty purchased the game in 2017.

TPG, a non-public fairness agency, has over a 60% stake in CAA.  A supply mentioned the agency hasn’t been concerned in CAA-Liberty Media talks.  Two different sources mentioned there’s no assure that present talks will result in a deal.

A TPG spokesperson confirmed the corporate receives “common approaches about its funding.”  Yet, the personal fairness agency isn’t in “lively discussions” about its stake in CAA.

Liberty Media wouldn’t goal to fully purchase the expertise company.  Instead, it seeks a big funding, aiming for “management and affect through the use of leverage, board presence, and complicated, tax-driven deal-making.”

Should funding talks succeed, this may result in “a convergence between rights holders, distribution channels and expertise, and is indicative different shifts within the media sector.”

According to BTIG Research analyst Brandon Ross, “Liberty’s aim is to create a vertically built-in music enterprise encompassing radio, streaming, concert events, and ticketing.”

 


Featured picture by Mark Kent (CC by 2.zero).