[Developing Story] According to reports from the Guardian, Universal Music is set to purchase EMI’s recorded music division for around £1.2bn. The publication also names Sony as most likely to be the new owner of EMI’s music publishing division at a price estimated to be approximately £1.26bn, over $2 billion dollars.
This deal will give Universal over a third of all music sales worldwide. Regulatory hurdles are expected to be overcome due to the severe decline of the music industry overall.
Citigroup is brokering EMI’s breakup and sale after grabbing back control of the company from Guy Hands and Terra Firma.
A key part of the deal, reports the Guardian is that “Citigroup is retaining in deficit EMI’s pension fund which has 21,500 members.”
The Wall Street Journal reported this morning at 7:25 CT 11/11, “Barring a last-minute hitch, EMI’s recorded-music unit will be sold to Vivendi SA’s Universal Music Group for $1.9 billion, while a group spearheaded by Sony Corp.’s music division will buy the publishing operation for $2.2 billion, according to a person familiar with the matter. The deal, valued at $4.1 billion in total, could be announced later Friday, but the bank may wait until the weekend, the person said.”