NY Post: Looks Like EMI Will Be Split And Sold

Recording And Publishing Being Split?

CITIGROUP is reportedly close to selling EMI, and "is almost certain to split the asset in two," reports THE NEW YORK POST. "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."

CITIGROUP has had trouble getting the price it wants for the record company and publishing company together. THE NEW YORK TIMES wrote last week that "turmoil in the financial markets has driven away many potential buyers and reduced the number of banks willing to finance bids. And according to several people involved with the auction, bidding prices have been lower than expected."

Last week, ALL ACCESS reported BMG-KKR and SONY had reportedly submitted the top two offers for EMI PUBLISHING, while insiders said that VIVENDI SA'S UNIVERSAL MUSIC GROUP and LEN BLAVATNIK's WARNER MUSIC GROUP are vying for the recorded music side of EMI. THE POST confirms this, writing "On the recorded music side, CITIGROUP is negotiating hard with two parties. The widely presumed lead bidder, WARNER MUSIC GROUP's owner ACCESS INDUSTRIES, is owned by Russian-born billionaire LEN BLAVATNIK. The other contender is VIVENDI's UNIVERSAL MUSIC GROUP."

THE POST report touches on the future of EMI CEO ROGER FAXON, with the rumor that "he could land at BMG RIGHTS, running its rapidly expanding music publishing empire. The firm just closed on another acquisition, LOS ANGELES-based BUG MUSIC. FAXON could just as easily land at WARNER or choose to exit with a handsome pay-out."

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