Reservoir Media Caught in Bidding War as Family Firm Outbids Activist

Reservoir Media finds itself the subject of a corporate tug-of-war this week, with two separate groups vying to take the music publisher private. The competing offers have pushed RSVR shares up 30% this year, closing at $9.75 after an 8.3% jump today.

Irenic Capital Management, the New York activist investor that has spent years complaining about Reservoir's supposed undervaluation, finally put its money where its mouth is with a $10 to $11 per share offer. The firm has been publicly cheerleading Reservoir's management while simultaneously arguing the market doesn't appreciate the company's worth. Apparently, patience ran thin.

Enter the plot twist: Richmond Hill Investment Co. and Wesbild have countered with $10.50 per share for all outstanding stock they don't already control. Wesbild happens to be a subsidiary of Persis Holdings, founded by Reservoir CEO Golnar Khosrowshahi's father. The family connection makes this less a hostile takeover and more an awkward family dinner conversation played out in SEC filings.

Reservoir's board has punted the decision to a special committee of "independent and disinterested" directors, who will weigh both proposals plus any other alternatives that might surface. The company has gone radio silent beyond that, promising updates only when "appropriate or required." Translation: don't hold your breath for daily commentary on this corporate chess match. The catalog acquisition frenzy continues to reshape the music industry, with AI's looming presence making song rights increasingly valuable commodities.