Potential bidders for Spanish-language broadcaster Univision Communications' music assets are shaving their offer prices by at least $50 million due to concerns over its artist contracts, access to advertising on the television network and issues related to an investigation of payola at the unit, the New York Post reports.
As the auction run by investment bank Allen & Co. nears its final stages, a half-dozen financial and strategic suitors remain involved in the bidding for Univision Music Group. Sources said Universal Music Group, which has a distribution relationship with Univision Music, has the inside track but SonyBMG and Warner Music Group remain in the running. EMI has dropped out, sources said.
The asking price was initially in the $250 million to $300 million range, but buy-side sources said they were revising their offers down to $200 million or less.
Univision Communications was acquired in March by Saban Capital Group, Thomas H. Lee Partners, Providence Equity Partners, Madison Dearborn Partners and Texas Pacific Group.
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