IMG Bidding War Intensifies as Two Suitors Are Cut

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Nov. 12 (Bloomberg) -- Bloomberg News’ Jeff McCracken and Bloomberg deals reporter Cristina Alesci break down the bidders for IMG as company narrows the field and looks at which company is in the lead and how much talent agency may go for. They speak on Bloomberg Television’s “Market Makers.”

-- a bloomberg deals here to talk about this.

They narrowed it to 12, and now we are down to five.

We assumed all along that the creative artists association was one of the likeliest buyers, and they have been pushed out because their bid was not among the top five.

When it was knocked down to five, it is not the caa taking themselves out, they were getting pushed out?

Right.

The people that are running this, they are trying to get about 2.7 billion dollars for this asset, and their getting pushed that -- back.

Their bid came into low, which is not actually surprising, because if you look at caa it is obligated -- compli cated.

More importantly, they were a minority investor.

You had several people kind of around this, and it gets really complicated.

They determined that they did not need to be around this, they thought the number was inflated, so they kind of underbid and as a result they are out of the auction.

How much will it sell for?

$2.5 billion.

I think the would-be buyers are closer to 180 million dollars.

What private equity guys who was not cool in college wants to hang out with them?

The hedge fund guys are cool.

I'm sure that would never drive decision-making.

Then peyton manning, eli manning, a lot of big names.

What is the timing on this?

By the end of the year.

They want to sign the deal by the end of the year.

I think you might want to keep an eye on the formula one business.

They are the stars in the end that might win this one.

Now that the rules are potentially traded for how these athletes can get paid, is there a jewel in their that these athletes might be able to crack open to get significant way more money?

If they are the only one in this mix, that could be huge for them.

You're talking about sec football jerseys, that is an enormous pie, and it is only growing.

You look at william morris, they have to really leverage.

They aren't on leveraged stock right now, and they have given their ages a lot of equity in the business.

If you leverage that, it could be tricky to try to pay those guys out.

They were very successful in incorporating endeavor into their business, but it was a much smaller business.

Now you're looking at a massive business.

How you're going to pay for it, how the financial searcher is going to be is going to be very tricky -- structure is going to be is going to be very tricky.

Thank you, cristina alesci.

This text has been automatically generated. It may not be 100% accurate.

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