David Bonderman’s grand media ambitions may be getting clearer.
The head of private-equity firm TPG Capital, which earlier this year bought a 35 percent stake in Creative Artists Agency and formed a $500 million fund with CAA for future investments, is in the running to buy British record label EMI, The Post has learned.
Lender Citigroup, which repossessed the major music label from Terra Firma after the private-equity firm ran into financial trouble, is currently meeting with bidders who are conducting due diligence.
Despite Terra Firma’s troubles with EMI, private-equity firms intent on building media empires remain interested in the music industry.
As The Post reported this month, Apollo Global Management, which bought “American Idol” owner CKX, is also bidding for EMI and is looking to expand in the entertainment space.
KKR-backed music publishing venture BMG Rights is also kicking EMI’s tires.
At the same time, private-equity firms need debt financing to complete a deal, and sources said that the cost of financing highly leveraged transactions like an EMI buyout has become significantly more expensive amid the grim outlook for the economy.
EMI has also informed suitors that it is willing to sell itself off in pieces, making it easier for potential buyers to arrange financing, a source said.
Further complicating a sale of EMI is that placing an appropriate value on the music enterprise has gotten more challenging, given the uncertain outlook of the market in the US and in Europe.