Concord has officially withdrawn its bid to acquire Hipgnosis after being outbid by Blackstone. Initially, Concord had increased its offer from $1.40 billion to $1.51 billion in an attempt to outdo Blackstone. However, Blackstone’s final bid of $1.57 billion was significantly more attractive, offering a 4% premium over Concord’s highest bid. As a result, the Hipgnosis board has recommended Blackstone’s offer to its shareholders. The transaction will see Blackstone assume Hipgnosis Songs Fund’s large debt facility. The strategic review by Hipgnosis aimed at maximizing shareholder value culminated with this acquisition offer being recommended. Concord has chosen not to continue its offer and has not provided explicit reasons for this decision. Meanwhile, Blackstone plans to exploit the potential of Hipgnosis’ extensive portfolio, possibly restructuring it within six to nine months post-acquisition.
Private Equity, Music Industry, Investment Management,United Kingdom, United States
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