Nine Scramble Over Parlophone
Universal Music Group has at least nine parties showing interest in buying Parlophone, according to the Financial Times.
Citing industry sources, the leading business paper says Warner Music, a joint venture led by British music entrepreneur Simon Fuller, BMG and Sony Music are all making a play.
Fuller’s bid was reportedly made in cahoots with Island Records founder Chris Blackwell and backed by Lord Jacob Rothschild’s RIT Capital Partners.
The FT reckons Ronald Perelman’s investment company MacAndrews & Forbes is another private equity house showing interest in Parlophone.
So far, Universal has received nine preliminary non-binding proposals for Parlophone, but other potential bidders are believed to be circling in the background. It’s reportedly received 12 offers for the other labels.
Warner, Blackwell Fuller and Perelman are also said to be interested in other Universal assets on the block, including the Sanctuary and Mute labels and the Now compilations.
Universal is being forced to sell the business to satisfy regulators’ concerns about its $1.9 billion takeover of EMI’s recorded music business.