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‘Sony could be turning up its stake in EMI Music’
Posted on Tuesday, 13 March 2018 11:00
Sony has entered into preliminary talks to potentially pick up a majority stake in UK-based EMI Music Publishing that could value it at roughly USD 4.00 billion, according to an initial report by Bloomberg.
The Japanese multinational conglomerate already controls 40.0 per cent of the business and is looking to pick up other shares from Mubadala Investment, which is planning to trigger an option for either the company to buy its interest or placing the whole group on the block.
Bloomberg reported that the vendor is seeking a valuation of USD 4.00 billion for EMI Music, a significant increase compared to the USD 2.20 billion the two paid for the asset in 2012.
Therefore, Sony may have to pay up to USD 2.40 billion for the remaining shares in the publisher, the news provider observed.
Not only would it solidify the Japanese group’s position as the largest music publisher but it would also gain full access to an extensive catalogue of over 2.10 million songs including hits from Beyonce and Carole King, some sources familiar with the matter told Business Standard.
Mubadala is also reportedly in talks with other potential buyers, including industry players and financial service companies, for its 60.0 per cent holding, which it controls with other investors such as Jynwel Capital and the Blackstone Group.
Music streaming sites such as Spotify and Apple Music have revitalised music industry sales, which have increased for the last three consecutive years.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 39 deals involving the global sound recording industry announced since the start of 2017.
Among those targets were Japan’s Usen, UK-based Kobalt Music Group and Netherlands-headquartered Spinnin Records.
Jay Z, among other investors, offloaded a 33.0 per cent stake in Norwegian streaming service Tidal to Sprint for an undisclosed amount in January last year.
Meanwhile, industry giant Spotify has recently filed paperwork with US regulators for an initial public offering in New York, which has been given a placeholder of USD 1.00 billion and could value the business at around USD 8.50 billion.
© Zephus Ltd