RUMOR MILL
Thursday, June 8, 2000
RICHARD BRANSON SELLS OUT
V2 Founder Sells Part Of V2 To Stay Airborne
In a move to keep his balloon full of hot air, Sir richard branson',390,400);">richard branson',390,400);">Richard Branson has struck a deal with his creditors, led by Morgan Stanley Dean Witter. In exchange for canceling 93 million pounds of debt ($141,577,428.56), the lenders get a 25% stake in Branson's V2 Records.
To further invigorate V2, Branson plans to throw 45 million pounds ($68,504,335 U.S) of his own into the company to develop new artists.
Blessed with a free spirit and an extraordinary set of choppers, Branson has now relinquished 34.5% of the company—counting 9.5% which was sold in 1998 when the original bonds were issued.
Investors will now decide on a third of the tracks for each V2 album, they'll get to travel about a third of the way around the world in Branson's balloon, and they'll get to park their Winnebagos on about a third of Branson's private island of Necker. It'll be interesting to see how Branson responds to having Morgan Stanley and Goldman Sachs about a third of the way up his bum.
