Warner Music Emerges As Most Likely To Buy EMI
October 27, 2011 at 3:53 AM (PT)
UNIVERSAL MUSIC GROUP has dropped out of the auction for EMI, reports REUTERS, quoting a source familiar with the situation. "UNIVERSAL had been primarily interested in the recorded music division at EMI, which has artists such as COLDPLAY and KATY PERRY, leaving WARNER MUSIC GROUP as the likely strongest contender for that part of the business."
YESTERDAY (NET NEWS 10/26), ALL ACCESS reported that WMG owner LEN BLAVATNIK had emerged as the leading bidder for EMI.
BUSINESSWEEK.COM confirms that, writing "WARNER MUSIC GROUP is front runner to buy EMI GROUP's recorded music unit from CITIGROUP INC., with a bid of $1.5 billion to $1.6 billion, two people with knowledge of the talks said. WARNER MUSIC and CITIGROUP are still negotiating expenses related to LONDON-based EMI's pension liabilities, said the people, who sought anonymity because talks are private."
Last week (NET NEWS 10/21), ALL ACCESS reported CITIGROUP was reportedly close to selling EMI, and was almost certain to split the company in two. Negotiations to sell the more valuable piece, the publishing company, for around $2 billion are said to be taking place with BMG RIGHTS MANAGEMENT, co-owned by NEW YORK private equity firm KKR and BERTELSMANN, the GERMAN media company.