Music group Sanctuary ends all buy-out talks

[darknemus]

Link: http://today.reuters.co.uk/news/newsArticle.aspx?type=entertainmentNews&storyID=2005-09-26T160028Z_01_HO657342_RTRUKOC_0_UK-MEDIA-SANCTUARY.xml (note, the link I posted in the news section appears to be inaccurate, can a mod fix?  thanks)

Here's the article:

LONDON (Reuters) - Sanctuary, the debt-laden music group that has issued a string of profit warnings in recent months, said on Monday that all potential buy-out discussions have ended.

"Following a review of the discussions to date regarding a possible offer for the company, it has decided to withdraw from all remaining discussions with third parties who had previously expressed an interest," Sanctuary said in a statement.

Music majors including EMI Group and Warner Music Group had at one time considered buying some or all of the company, according to sources familiar with the situation.

Sanctuary said it still has the support of its bankers. The company's shares fell 18 percent to 6.5 pence by 1527 GMT (4:27 p.m. British time).

Sanctuary is the world's largest independent music label and a major force in artist management, touring and merchandising. Its artists include Elton John and former Guns 'n' Roses frontman Axl Rose.

Last week Sanctuary said it expected to post a full-year loss before interest, tax, depreciation and amortisation, well below analyst expectations, following a series of problems at its operating businesses. It plans a major series of cost-cuts by year-end.


? Reuters 2005. All Rights Reserved.

Of course, feel free to speculate widly about this.  I do think its yet another interesting coincidence, given the barrage of 'news' we've had the past few days.  (barrage in comparison to our usual drought, anyway)

-darknemus

[GypsySoul]

Sanctuary is the world's largest independent music label and a major force in artist management, touring and merchandising. Its artists include Elton John and former Guns 'n' Roses frontman Axl Rose.

"former" GNR frontman? ? WTF???

And why isn't there a name associated with this statement?? "Sanctuary said" ... Who the fuck is "Sanctuary"?? is Sanctuary the infamous "they" as in "they said"??

[WAR41]

hahaha Gypsy, didnt you know that Sanctuary is a living and breathing person??  I have met Sanctuary before and he is a great guy!

I agree, that is pretty piss poor journalism, but look at where its coming from... Rueters!!  They are the absolute worst when it comes to reporting news.  They report based on rumors rather than getting official sources to quote.  Based on that, most of this board could report news for Rueters. 

[33]

Ah I agree Darkemus! Another little snippet of news to add to the recent events!! I am starting to like this even more recently!!

[ppbebe]

It's really weird  Reuters keeps putting that bloody "former" before "Guns 'n' Roses frontman Axl Rose" and hasn't corrected it yet..

[jameslofton29]

Wouldn't "cost cuts" mean that they might drop some bands from their roster? Bands that aren't making much money for them? Maybe not GNR, but some of the bands aligned with Sanctuary have something to worry about. I guess they could just layoff some workers. But that will only save a limited amount of money.

[Christos AG]

Wouldn't "cost cuts" mean that they might drop some bands from their roster? Bands that aren't making much money for them? Maybe not GNR, but some of the bands aligned with Sanctuary have something to worry about. I guess they could just layoff some workers. But that will only save a limited amount of money.

Bands make money for Sanctuary. They don't lose money for them.

Cost cuts means that they're losing money somewhere (too many employers?) and they'll reduce them somehow (fire a few people...)...

[HoldenCaulfield]

Ah I agree Darkemus! Another little snippet of news to add to the recent events!! I am starting to like this even more recently!!

Are you implying that the Sanctuary head honchos have heard the album and they've decided it will bring them out of the hole? I am... 

[GypsySoul]

Wouldn't "cost cuts" mean that they might drop some bands from their roster? Bands that aren't making much money for them? Maybe not GNR, but some of the bands aligned with Sanctuary have something to worry about. I guess they could just layoff some workers. But that will only save a limited amount of money.

Bands make money for Sanctuary. They don't lose money for them.

Cost cuts means that they're losing money somewhere (too many employers?) and they'll reduce them somehow (fire a few people...)...

Some 'cost-cuts' issues were addressed in that September 10, 2005 issue of Billboard the one with Merck on the cover.
Check out the article "At Sanctuary, The Heat Is On To Improve Performance":? http://www.heretodaygonetohell.com/board/index.php?topic=22451.0

[Holy War]

"former" GNR frontman? ? WTF???

Hopefully this doesn't bring out the old argument "Axl is the frontman because Guns N' Roses doesn't exist anymore."   

[Nytunz]

scary 

[33]

Ah I agree Darkemus! Another little snippet of news to add to the recent events!! I am starting to like this even more recently!!

Are you implying that the Sanctuary head honchos have heard the album and they've decided it will bring them out of the hole? I am...?

Maybe! I hope so!

[Thorazine Shuffle]

While it seems that for now Sanctuary will not be bought out, I have a hard time that Sanctuary took themselves off the market because of CD.  I think that their financial worries run far deeper than GNR.  Anyway, Sanctuary are GNRs managment firm, not their record label.  I do hope Sanctuary stays afloat due to the fact that they seem to be the only company in the industry that are less concerned of the business aspect, and more concerned about the artist.  Thats what makes them so great.

[erose]

could it be that snctuary is betting al on CD?? i mean, if they know that cd will sell ten million records of the next few years, wouldn't it be pretty tuipd to sell out? would an increase of record sales bump up the stocks and shit?

[Scabbie]

They must be mad if they were betting it all on Chinese Democracy. Absolutely bonkers, not fit to run a company. Which is why they have several high profile artists on their rosters, not just Axl and Elton.

Anyway, I find it interesting that Axl is mentioned in most news articles / press releases with regards to Sanctuary. Is it an attempt to put pressure on him? I don't know, but it seems weird to pay so much attention to him when he hasn't bought out any product in the last 10 years or so.

[GypsySoul]

Sanctuary said it still has the support of its bankers. The company's shares fell 18 percent to 6.5 pence by 1527 GMT (4:27 p.m. British time).

Sanctuary is the world's largest independent music label and a major force in artist management, touring and merchandising. Its artists include Elton John and former Guns 'n' Roses frontman Axl Rose.

Last week Sanctuary said it expected to post a full-year loss before interest, tax, depreciation and amortisation, well below analyst expectations, following a series of problems at its operating businesses. It plans a major series of cost-cuts by year-end.

This sorta goes with that.? It's from the October 1, 2005 issue of Billboard mag.

THE LATEST NEWS FROM .biz
www.billboard.biz

>>> NO HAVEN FOR SANCTUARY[/b]
? ? ?Stock in Sanctuary Group continued in its downward trend after the British independent firm reported its third profit warning in the last four months Sept. 21.? In a statement issued to the London Stock Exchange, the firm said that full-year losses would be below the lowest end of market expectations.? Group CEO Andy Taylor admitted that the company's bullish expansion strategy had damaged its outlook.? "Sanctuary has disappointed the market significantly this year and, with hindsight, it is clear we grew too fast," Taylor said in a statement.
end quote

Gypsy note:? There's a second article about Sanctuary Group selling its book publishing imprints, Sanctuary Music Technology and Arcane, to British company Music Sales Group. "The Sept. 7 sale shutters the Sanctuary Publishing division."

Gypsy comment #1:? "the firm said that full-year losses would be below the lowest end of market expectations"
Isn't that a good thing?? Or am I reading that wrong?

Gypsy comment #2:? Andy Taylor was the name of the Sheriff on The Andy Griffith show.?

[Thorazine Shuffle]

From www.blabbermouth.net

Times Online is reporting that Sanctuary Group, the music company which handles artists such as GUNS N' ROSES, IRON MAIDEN, SLIPKNOT and SLAYER, gave warning on Friday (Oct. 28) that it would have to take a multimillion-pound hit to its balance sheet as it fights to ensure its long-term survival.

The company told investors that its end-of-year balance sheet "will show net liabilities" ? meaning that, technically, the business is worth less than nothing.

Shares in Sanctuary plunged 15 per cent as the company said that it was reviewing its accounting policies, as well as dealing with the consequences of a dismal year of trading.

Sanctuary is also planning on making 175 staff redundant to cut costs, twice the amount planned initially. According to analysts, that exercise will cost an estimated ?8 million, to achieve annual cost savings of about ?16 million.

Read more at Times Online.


This can't be good.   Sorry Mods if this is in the wrong section.

[jarmo]

Sanctuary braced for painful hit





/jarmo

[rainX]

Sanctuary braced for painful hit





/jarmo

dude how fucking bizarre is that. you post this at 6:13, me at 6:14, and someone else started a thread at 6:12

[jarmo]

Google Alerts? 





/jarmo