(Bloomberg) -- Warner Music Group decided not to acquire French record label Believe SA, it said in a statement.
Believe took note of the decision in a separate statement and said it would “determine next steps in relation to the possible evolution of the company's control.”
Last month, WMG said it could value Believe at at least €17 per share, leading the board of the French music company to invite the American major to submit a binding, unconditional and fully financed offer.
WMG's interest followed a February take-private offer by Believe's founder Denis Ladegaillerie, who has partnered with investment firms TCV, the company's largest shareholder, and private equity firm EQT for a deal that valued the company at €1.46 billion ($1.58 billion), or €15 per share.
Believe, which has roughly 2,000 employees in 50 countries, was founded in 2005 as a music label targeting independent artists and offering tools to expand online. It has been listed in Paris in 2021 at a €1.9 billion valuation.
A group of French labels described Warner's approach as “hostile” and a “destructive” for an industry dominated by three major players — Universal Music Group, Sony Music Entertainment and Warner.
--With assistance from Ania Nussbaum.
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