Big Music is about to get even bigger as Warner Music Group is preparing to launch a takeover of independent music group Believe.
Among other businesses including artist and label services, Believe also owns TuneCore, one of the largest and most accommodating digital distributors in the music industry for independent artists.
Warner has teed up a $1.8 billion offer for the French-based Believe, according to a disclosure to Warner shareholders. Believe is a publicly traded company currently trading at €15.88 per share; Warner’s deal would price Believe at €17 per share.
In addition to TuneCore, Believe also owns record labels including Nuclear Blast, India’s Think Music, Sentric Music publishing (a competitor to Songtrust) and more.
The offer comes after Believe founder and CEO Denis Ladegaillerie put the company in play by announcing a consortium to acquire Believe for €15 per share.
Warner’s offer follows their request for due diligence dated February 27, which signaled their interest in mounting a rival to Ladegaillerie’s bid.