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Warner Music Group (NASDAQ:WMG) announced on Saturday that, after careful evaluation, the company has decided not to make a binding offer to French record label Believe.
Its decision comes after the New York-based entertainment company approached Paris-listed Believe in February initiate negotiations for a potential business combination.
At the time, WMG said that based on public data, Believe could command a price of at least 17 euros per share.
Believe, a Paris-based digital music company, has taken note of 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 leadership team for their time and cooperation and wishes the company every success moving forward,” Warner Music Group (WMG) said.
WMG’s offer came after Believe founder Denis Ladegaillerie teamed up with investment firms TCV and EQT to indicate 1.5 billion euros ($1.6 billion), or 15 euros per share value of the company, in a potential take-private deal.
Believe said it will involve all stakeholders, including Ladegaillerie, TCV and EQT, “to determine the next steps on the possible evolution of control of the company and will inform the market accordingly.”