Seagram cuts price for PolyGram NV to $10.4 billion
Article Abstract:
PolyGram NV's poor second quarter results and top executive resignations, during a slump in the global music industry, have caused Seagram Co. to cut its purchase price for the company from Philips Electronics NV by about 2% or $200 million to $10.4 billion. The industry slump has been attributed to the failure of new bands to repeat early successes with second album sales, Asian financial crisis and the lack of new global superstars. Seagram's plans to save $300 million annually by joining PloyGram and Universal Music, which will result in massive layoffs. PloyGram's CEO and president will resign, and there is speculation that he might join Time Warner Inc.'s Warner Music Group.
Comment:
Philip's PolyGram NV acquired by Seagram Co. for $10.4 billion after purchase price is cut by $200 million
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Seagram-PolyGram Duo: Off Key?
Article Abstract:
Seagram Co. will pay $10.4 billion to acquire PolyGram. The expectation is to create one of the largest recorded music companies in the world. However, absorbing PolyGram is not without problems. Seagrams has hired Boston Consulting Group to cut between $275 and $300 million in PolyGram's operating budjet. This has resulted in morale problems. Rumors persist that prominent executives at Polygram will end up looking for employment elsewhere. Additionally, some of Polygram's performing artists are reportedly reluctant to resign with PolyGram. Seagram expects to partly finance the deal by selling Polygram's film division. Though current bids are below expectations.
Comment:
Discusses problems with the Seagram Co./PolyGram merger
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Unhappy with PolyGram Film offers, Seagram may ask bidders to try again
Article Abstract:
Seagram Co., after announcing its dissatisfaction with the past round of acquisition bids for its PolyGram Filmed Entertainment, said it will accept new offers for the motion picture production company. Industry analysts have said that Seagram will fold all or part of PolyGram into its Universal Studios entertainment operations if the upcoming round of bidding fails to produce a substantially higher bid. The original asking price for PolyGram, which owns a 1,500 film library, had been $1 billion.
Comment:
Has announced, through parent-compant Seagrams, that it will accept new bids for acquisition
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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