CAA-Partnered Private Equity Firm, Owner of 'American Idol' CKx Consider EMI Bids

7:25 AM PST 08/17/2011 by Georg Szalai
Dave Hogan/Getty Images

David Bonderman’s TPG Capital and Apollo Global Management are among those performing due diligence.

NEW YORK - David Bonderman’s private equity firm TPG Capital, which recently bought a 35 percent stake in Hollywood agency CAA, and Apollo Global Management, which earlier this year acquired American Idol owner CKx, are among those performing due diligence for a potential bid for music major EMI, the New York Post reported on Wednesday.

Private equity-backed music publishing venture BMG Rights is also taking a look, the paper said. Len Blavatnik's Access Industries, which completed its acquisition of Warner Music Group last month, is widely seen as a lead suitor given that it can reach cost synergies between the two major labels.

EMI acts include Coldplay and the Gorillaz.

Lender Citigroup, which repossessed EMI from private equity firm Terra Firma when the latter ran into financial problems, is meeting with suitors who are conducting due diligence, the Post said.

It highlighted though that the debt financing that private equity groups will look at for a deal is coming at a higher cost amid a weaker economic outlook. EMI has told suitors that it is willing to sell itself off in pieces, which would make financing of smaller deals easier, the Post said.
 

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