NEW YORK, Nov. 24 (UPI) -- After talks with EMI broke down, Time Warner agreed Monday to a $2.6 billion takeover of its music division by a consortium of investors.
The investors were led by Thomas H. Lee, the private equity group, and Edgar Bronfman Jr., the former chief executive of Seagram and onetime songwriter for Celine Dion and others.
Time Warner said it obtained an option to reacquire up to 15 percent of Warner Music Group with three years and as much as 19.9 percent of the business under unspecified circumstances, the Financial Times (London) reported.
Under the planned takeover, Thomas H. Lee is expected to emerge with the largest single stake, equivalent to almost half of the equity of $2.6 billion.
Bronfman is expected to invest several hundred million dollars and other investors include Bain Capital, Providence Equity Partners and Haim Saban.
