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Warner Music Group (NASDAQ:WMG) announced Saturday that, after a thorough evaluation, the company has decided not to pursue a binding offer for French record label Believe.
Its decision comes after the New York-based entertainment company approached Paris-listed Believe in February to initiate discussions for a potential business combination.
At the time, WMG said Believe could command a price of at least €17 per share based on public data.
Believe, a Paris-based digital music company acknowledged Warner Music Group’s (WMG) decision, noting that its ad hoc committee tasked with evaluating the proposal is aware of the situation.
“WMG thanks the Ad Hoc Committee and Believe’s leadership team for their time and cooperation and wishes the company every success in future,” Warner Music Group (WMG) said.
WMG’s offer came after Believe’s founder Denis Ladegaillerie teamed up with investment firms TCV and EQT to indicate €1.5B ($1.6B), or €15 per share value for the company, in a potential take-private deal.
Believe said it will involve all stakeholders, including Ladegaillerie, TCV, and EQT, “to determine next steps about the possible evolution of the company’s control and will inform the market accordingly.”