Billionaire Phil Anschutz starts the bid at $10 billion for the auction of his AEG, also known as Anschutz Entertainment Group, with high hopes that the sports and entertainment giant will attract bids.
According to sources, the 10 million is indeed, higher than expected. Just last month sources close to potential buyers had stated that the company could possible expect anywhere between $6 billion and $8 billion in a sale.
The initial list of potential buyers includes real estate firms, wealthy individuals, private equity firms and sovereign wealth funds. Based on sources, dozens of potential buyers were expected to receive the 25-page AEG information memorandum on Monday.
By the end of the month, the books with financial details and non-disclosure agreements should most likely be sent out by Anschutz.
Investment companies like Guggenheim Partners LLC; private equity firms like Bain Capital LLC, Thomas H. Lee Partners LP, and Colony Capital LLC; trade buyers like Liberty Media Corp and wealthy billionaires such as Patrick Soon-Shiong have all made the list of potential bidders.
In order to proceed to the next round, bidders will most likely need to bid closer to Anschutz higher expectation, anywhere from a “high single digit, low double digit,” according to sources.
AEG, is one of the biggest sports and entertainment giant ever, with nearly 25,000 employees globally in the world’s largest cities: Berlin, London, Shanghai and Los Angeles, including tons of entertainment venues such as the Mercedes-Benz Arena in Shanghai, the Staples Center in Los Angeles and The O2 Arena in London, but that’s not all. AEG owns a stake in the NBA’S Los Angeles Lakers and the Los Angeles Galaxy Major League Soccer team.
AEG is looking forward to a successful auction and has already taken precautions such as confidentiality agreements for all potential buyers to prevent joint bids among parties.