Universal Music and Sony Buy EMI

Universal Music and Sony have to reach a consensus with EMI for $ 4100000000 universal sound recording department unit, and a consortium led by Sony Publishing business to buy. On Friday, the results of the tender for the sale of the legendary British media group EMI Group. As the current owner of EMI - U.S. bank Citigroup, recorded music unit to Universal Music Group (part of the French holding company Vivendi) sold for $ 1.9 billion publishing business will receive a consortium led by Sony Corp. for $ 2.2 billion led . the deal, Vivendi plans of the debt and the proceeds from the sale of non-strategic assets to finance. According to sources, Bloomberg, a consortium of Sony, which also funds the government of Abu Dhabi will get a substantial part of the funds from the GSO - unit fund Blackstone Group. Sony invested $ 325 million in the same EMI, worked with such renowned groups such as The Beatles and Pink Floyd, the property of Citigroup in February this year. The company went to the bank, since the private investment fund Terra Firma Capital, bought EMI lost in 2007 for $ 8 billion loan obligations ($ 5.5 billion). In June, EMI was offered for sale. In October, Citigroup set a minimum price: $ 1.9 billion for the recording unit and $ 2.5 billion for the smaller but more profitable publishing business (catalog contains 1.4 million songs). The tender results were unexpected, since neither Universal, Sony may not be the favorite in the fight for EMI Group are considered. Most likely buyer of the recording division called Warner Music Group, the Russian-born of American businessman Leonard Blavatnik and Publishing possession - a consortium of investment fund KKR and German media group Bertelsmann. However, as reported in late October, the Financial Times, Warner Music offered $ 1.5 billion for the record industry does not work for the seller. The price of $ 4100000000 also exceeded expectations: Analysts believe that, given the situation on the markets, EMI sold for less. In return, KKR and Bertelsmann offered $ 1.8 billion to $ 2 billion in sales EMI would shift the balance of power in the music industry. Instead of the "big four" record companies in the world's biggest market its three main players - Sony, Universal and Warner. In this case, Universal and EMI will jointly control 38% of global sales, and in some countries, such as France, where the percentage 50%. It is possible that there have intensive interest of supervisors. The deal will make and Impala - European trade group that represents the interests of independent record labels. However, management believes Vivendi that the deal is approved by regulators. "We hope that we have with them, is a serious and fruitful dialogue, and we think we have a strong case," - said Vivendi CEO Jean-Bernard Levy. Kommersant