Citi To Press On With EMI Sale

Citigroup appears set to go ahead with the sale of EMI even if it means splitting it up and letting it go for (relatively) cheap.

Despite the difficulties of trying to sell the company in a cash-strapped market, it looks as if the only remaining UK major music company could have new owners by the end of the month.

The publishing side of the business is reckoned to have attracted bids near the $2 billion mark, while bidding for the recorded music division is said to range from $1.3 billion to $1.5 billion.

That’s well down on the $4 billion the U.S. bank was hoping to bring in, but Citi regards EMI as somewhat of a toxic asset and appears ready to take whatever money is already on the table.

Papers ranging from the New York Post to the Daily Mail have BMG Rights Management as being among the favourites for EMI’s publishing business.

Sony Corp is also reportedly in the frame for the publishing unit, but BMG is less likely to cause regulatory issues.
The Mail also suggested that Robbie Williams’ departure from the record label has helped hasten the sale because his switch to Universal may further devalue EMI.

Universal is also reportedly leading the bidding for the recorded music business, although it’s believed to be head-to-head with Warner Music Group.

Selling EMI’s record business to either party would likely result in a protest from IMPALA, the independent music companies’ organisation, which has said it will oppose any sale that reduces the number of major music companies from four to three.