Bug Music, which was up for sale in an aborted auction last summer, is back on the block, according to sources. The auction is once again being run by JP Morgan Chase, and according to Bloomberg News, which broke the news. Bids are due next week.
Last year when Bug Music was up for sale, Spectrum Equity Investors and media executive Tom McGrath, which bought Bug in 2006, reportedly were seeking $270 million and $300 million. But the Bug owners pulled the deal when the auction failed to generate a price in that range, sources said at the time. They owners said at the time that Bug Music had annual revenue of about $72 million, of which $25 million was believed to be net publisher's share.
Since then, the company has sought to boost revenue and NPS by buying the Saban Music Group catalog, which includes themes and background music from cartoons like the Mighty Morphin Power Rangers, Teenage Mutant Ninja Turtles, The Addams Family Reunion and Princess Sissi, among other publishing moves.
The move to shop Bug at this time has some potential bidders puzzled since many suitors are also pre-occupied with the auction for the EMI Group, which was formerly put up on the block in the last few weeks. That process only recently moved passed the non-disclosure negotiations, with the EMI book containing the company's financial only being spread in the last week or two. Sources suggest some bidders may not have the resources to pursue both EMI and Bug.
Representatives for Bug and EMI could not be reached for comment at press time.