IMG Bidders Down To Three

Written by: Bob Larson Tennis on 7th November 2013

IMG Bidders Down To Three

epa02546258 Andy Murray of Great Britain (L) shakes hands at the net with Jurgen Melzer of Austria (R) after winning his fourth round match at the Australian Open Grand Slam tennis tournament in Melbourne, Australia, 24 January 2011. EPA/DENNIS M. SABANGAN |

It appears that the bidders for IMG have been cut to three from the 10 that put in bids at the beginning of October. Forstmann Little owns the entertainment and media giant and is seeking at least $2 billion, but a bidding war may boost the price to around $2.3 billion or perhaps even higher.

Sources tell Daily Tennis that the three groups still in play are: Creative Artists Agency (CAA), which is bidding with private-equity backer Texas Pacific Group; Ari Emanuel’s William Morris Endeavor, which is backed by buyout firm Silver Lake Partners, and the Chernin Group, which has partnered with CVC Capital.

Creative Artists Agency is one of the world’s top talent agencies, but does not have the financial resources to be able to bid by itself. Therefore, it had to bring in a partner with enough financial muscle like Texas Pacific Group (TPG). What isn’t known at this point is whether has been able to strike a deal that would give CAA majority control. Texas Pacific Group may bring other investors along with it. TPG already owns a 35 percent stake in CAA

IMG’s annual earnings before interest, taxes, depreciation and amortization are said to be just under $200 million. IMG College, which is the rights holder for about 200 universities, is considered the crown jewel of the company and accounts for about 45 percent of its business.

IMG has represented a slew of top players and still represents Novak Djokovic and Maria Sharapova. It runs tournaments such as Miami and Stanford, and has sponsor and licensing programs for the Australian Open and Wimbledon.

It also has its name on the profitable IMG Bollettieri Tennis Academy in Florida, and has large broadcasting arm.

IMG Media agreed on a new three-year deal with the Barclays Premier League (soccer) for airplanes and ships rights, which includes extensive coverage on Sport 24, the 24-hour live sports channel exclusively produced for the airline and cruise industry.

One report has it that Peter Chernin and CVC Capital has recently tendered the highest bid. Chernin and CVC Capital own Formula One racing and are partnered with Abu Dhabi Investment Group and Mumtalakat.

William Morris Endeavor also is said to have recently upped its bid.

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