Bundesliga: Blackstone considering dropping investment bid
US private equity firm Blackstone is considering dropping out of the bidding process for a share of German football’s media rights, sources say.
The proposed investment deal has attracted fierce criticism from fans.The list of candidates for a stake in German football’s future broadcast revenues could soon be down to just one after US financial investor Blackstone said it was considering withdrawing from the bidding process, a move which would leave CVC Capital Partners as the only remaining contender.
After Bloomberg first reported Blackstone’s concerns, a source also confirmed to DW on Tuesday that the private equity firm was indeed considering stepping away from the process which they said had “gone on for a very long time, during which parameters have moved.” The source cited “structuring and economic factors around the deal [which] mean that it’s hard to see how we could make the setup work” as well as “destabilizing” public calls from German fan groups and some club officials for a revote on the issue, leading to “too much uncertainty about the transaction.”
The Reuters news agency also quoted sources familiar with the matter who cited threats by some club officials to prolong the process further as a reason for the withdrawal of interest, with one source saying: “It’s a messy situation.” German newspaper Die Zeit has also confirmed the reports. After fellow private equity firms Advent and EQT were also ruled out of the process at the end of January, Luxembourg-based CVC is the only remaining bidder.