Specializing in supporting independent artists and labels, the company Believe is asking Warner Music Group, which has shown interest in taking control, to submit a formal offer by April 7.
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Believe’s board of directors is inviting Warner Music Group (WMG), which has expressed interest in taking control of the unicorn, to submit a formal offer by April 7, it said Monday in a statement.
A music distribution specialist born in France in 2005, Believe owns several distribution brands and several labels (Tunecore, Naïve, All Points, Grove Attack etc.) and has since expanded internationally. The company defends dozens of artists including Jul, Izïa, Arthur H, Jeanne Added, Baptiste Trotignon, Djadja & Dinaz, Gaël Faye, DJ Pone, Keren Ann, M83, Avishai Cohen, Pink Martini, Yaron Herman, Anne Gastinel, P. R2B, Nej, Werenoi, Chien Noir, Kalash Criminel and Heuss L’Enfoiré
Warner in competition with another offer
Warner Music Group had contacted Believe’s board of directors, indicating that it could propose an offer at a price of 17 euros per share. This mark of interest, again “exploratory and non-committal“, was announced at the end of February but made official on March 8.
It is in competition with another pre-existing offer, that of the consortium founded by Denis Ladegaillerie, boss of Believe, joined by the TCV and EQT funds. On February 12, he unveiled a buyout offer at a price of 15 euros per share, valuing the company at around 1.5 billion euros.
But this offer was not made according to the rules, according to the Financial Markets Authority (AMF), because the consortium gave up at the end of February to obtain the reasoned opinion of the board of directors of Believe saying that the offer is “in the announced interest of the company“. By waiving this suspensive condition, the consortium, which was aware of the information of the competing offer from WMG, still not public, “granted itself a decisive advantage in the success of its offer“, believes the president of the AMF.
Believe, specializing in supporting independent artists and labels, was listed on the stock market in mid-2021 at a price of 19.50 euros per share. Its price has seen a small rebound since Warner’s announcement, closing at 15.82 euros on Friday compared to 15.74 euros three days ago.