London-headquartered booze behemoth Diageo has emulated McDonald’s cut-price marketing strategy – not only with Burger King’s 99¢ Whopper but with the global burger chain itself.
Originally on the menu for $2.26 billion (€2.23bn; £1.43bn), a group of US investors (Texas Pacific Group; Goldman Sachs & Company and Bain Capital) were poised to tuck-in to this tasty snack when someone queried the price, opining it to be on the high side of excessive in view of the chain’s failure to meet certain undisclosed performance criteria during the year to June 30.
Declining a compensatory sidedish of fries, the investment trio got up to leave the restaurant but were hastily ushered back to their table by Diageo, desperate to unload the burnt offering before it got cold.
A new menu with lower prices – reportedly down to a giveaway $1.5bn – got the trio's gastric juices flowing again and details of a done deal are expected to be announced within the next few days. Watch this space for news of a well-wiped plate!
• Late breaking news ... (07.23GMT)
(The Washington Post Online/Reuters) Diageo on Friday confirmed the sale for $1.5 billion of its Burger King hamburger chain to the Texas Pacific consortium. Diageo will be providing some of the debt financing for the deal.
Data sourced from: New York Times; additional content by WARC staff