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

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

After three years of talks, Liberty Media’s lastly acquired Pandora Media.

The $three.5 billion all-stock deal values Pandora at $10.14.  The latter’s stock price at the moment sits at $eight.53.

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

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

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

Would we take a look at UMG if introduced?  Absolutely.  Does it make probably some sense to personal a part of the content material infrastructure as a approach to hedge?  Absolutely.

Several days in the past, valued UMG at $33.three billion, greater than Vivendi, its mum or dad firm.  The French conglomerate has lengthy floated the concept of promoting as much as a 50% stake in UMG.

Then, a month later, revealed Maffei and his staff have ready for negotiations with iHeartMedia’s collectors.  They purpose to accumulate a complete stake of 35% of the standard broadcaster, giving it a majority share as soon as iHeartMedia exits chapter.

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

Liberty Media’s Got Talent?

According to the Financial Times, Liberty Media stays in talks to put money into Creative Arts Agency (CAA).  The latter firm 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 the moment 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 “larger negotiating leverage for its different companies — specifically Formula One.”  Liberty purchased the game in 2017.

TPG, a personal fairness agency, has over a 60% stake in CAA.  A supply stated the agency hasn’t been concerned in CAA-Liberty Media talks.  Two different sources stated a assure doesn’t exist 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 purpose to utterly purchase the expertise company.  Instead, it seeks a major funding, aiming for “management and affect through the use of leverage, board presence and sophisticated, tax-driven deal-making.”

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

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

 


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