It looks like Chrysalis will be with us for a while longer. The U.K.-based music company has announced today that it has rejected the $205 million highest bid from an unconfirmed potential buyer and suspended negotiations with all other suitors. Although Chrysalis refused to release the names of the final bidders, several insider sources have pointed to EMI Group and France’s Lagardère.
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It looks like Chrysalis will be with us for a while longer. The U.K.-based music company has announced today that it has rejected the $205 million highest bid from an unconfirmed potential buyer and suspended negotiations with all other suitors. Although Chrysalis refused to release the names of the final bidders, several insider sources have pointed to EMI Group andFrance’s Lagardère.
Chrysalis apparently failed to receive the (speculated) $344 million that it sought for the buyout, pointing in a press release to “global economic and credit market conditions” as the primary culprits for the deal’s failure. “The shareholders never gave an indication, but the board had a clear idea …of what we valued the business at. And that [offer] fell woefully short,” CEO Jeremy Lascelles stated.
The company has itself gone through “a tough old few months.” Continued uncertainty about its future, coupled with the Hollywood writers’ strike, has hampered its ability to bring on new acts. It projected a 10 percent decrease in profits over the past six months. Just today, reacting to news on the rejected offers, Chrysalis’ stock dropped 20 percent.
Still, not all is lost. The company announced that its artists held nine of the Top 40 spots this week.
So will we be hearing more news about a Chrysalis buyout as soon as the economy crawls out of the gutter? Stay tuned to AS to find out!
