Last year, whispers started getting louder that EMI Music Publishing was up for sale, and that the company’s various owners wanted to make a tidy profit following their $2.2bn acquisition of the firm in 2012.
Today, we learn just how tidy that profit might be.
According to a report from Bloomberg citing anonymous sources, EMI Music Publishing shareholder Mubadala Investment Co. is actively seeking a valuation of at least $4bn for the outfit.
According to Sony Corp’s latest filings, EMI Music Publishing controls a catalogue of 2.05m songs.
Bloomberg reports that Sony Corp has already held preliminary talks with Mubadala about acquiring the company, ahead of a formal sale process which is permitted to begin from the end of June.
Mubadala is also said to have contacted other potential buyers, including entertainment and financial groups.
Mubadala is part of a consortium which owns 60% of EMI Music Publishing; others in this collective include Jynwel Capital, the Blackstone Group’s GSO Capital Partners LP and David Geffen.
This consortium is believed to be exercising an option which would either see Sony acquire its holding, or allow a sale of the company elsewhere.
Sony Corp is believed to own nearly 40% of EMI Music Publishing today, and – via Sony/ATV – is the company’s current global admin partner.
(Sony originally acquired 30% of EMI as part of the consortium in the 2012 deal, with the Michael Jackson Estate picking up the remaining 10%.)
Len Blavatnik, owner of Warner Music Group, is also said to be interested in bidding for the company.
Sony slashed 60% of EMI’s post-acquisition workforce following the 2012 buyout.
In 2016, Sony Corp acquired the 50% in Sony/ATV it didn’t already own from the Jackson Estate in a $750m deal.Music Business Worldwide