BMG Rights Management Focused On Acquiring EMI Assets
October 23, 2012 at 3:40 AM (PT)
While the sale of EMI MUSIC is a done deal, EMI PUBLISHING has yet to finalize its new home. THE NEW YORK POST reports KKR and BERTELSMANN, co-owners of BMG RIGHTS MANAGEMENT, which are thought to be the leading contender for some EMI assets, are having internal disagreements about the acquisition.
"The most attractive EMI asset is record label PARLOPHONE, which is valued at $600 million and houses artists such as COLDPLAY and DAVID BOWIE," notes CLAIRE ATKINSON in THE POST. "While both KKR and BERTELSMANN support BMG entering the EMI auction, which is scheduled to kick off in mid-NOVEMBER, they have different ideas when it comes to price, according to sources."
PARLOPHONE is the key for KKR, which the report says could dissolve its half of BMG RIGHTS.
BERTELSMANN CEO THOMAS RABE has gone on record that he wants "to make the company a major player again after years of stagnation under earlier management."
It's possible that BERTELSMANN could move to acquire KKR's 51% of the venture, or KKR could also sell to a separate entity.
"KKR's deals are usually four to five years and then they're out, it's not what they do," a senior music source told THE POST. Another executive familiar with BMG's thinking said, "They won't exit immediately. They will start looking for an exit within 12 months."