Will EMI Be Sold In Two Pieces?
October 13, 2011 at 3:54 AM (PT)
Earlier this month (NET NEWS 10/5), ALL ACCESS reported the sour economy's tight credit markets could prevent CITIGROUP INC. from selling EMI GROUP at a price it desires. Reports indicated that the corporation may receive lower bids, which may prompt it to break up the conglomerate to sell in pieces.
That seems to be happening.
Despite attempts to sell EMI in one piece, reports have CITIGROUP increasingly likely to sell the company off "as two separate businesses -- recorded music and song publishing -- after final bids came in last week, according to several people familiar with the matter," reports REUTERS. "The music company is reviewing competing offers for EMI PUBLISHING from BMG MUSIC, a joint venture between BERTELSMANN and private equity firm KOHLBERG KRAVIS ROBERTS, and SONY/ATV -- a joint venture between SONY CORP and the estate of MICHAEL JACKSON, these people said."
BMG-KKR and SONY have reportedly submitted the top two offers for EMI PUBLISHING, while insiders told REUTERS that "VIVENDI SA'S UNIVERSAL MUSIC GROUP and LEN BLAVATNIK's WARNER MUSIC GROUP are vying for the recorded music side of EMI."
Earlier this week (NET NEWS 10/10), LEN BLAVATNIK, owner of WARNER MUSIC GROUP was reportedly considering dropping his bid for EMI GROUP because CITIGROUP is taking too long to choose a buyer.