Business

Citi to sell EMI for $4.1B to Universal, Sony

Citigroup has reached a deal to split up and sell iconic UK record company EMI to Vivendi’s Universal Music Group and a consortium of investors lead by Sony Corp.

Citi will sell EMI’s recorded music arm to Universal for $1.9 billion, and the publishing business to Sony group for around $2.2 billion.

The Sony consortium now includes Hollywood heavyweight David Geffen, who is still negotiating his investment in the bid, along with private-equity firm Blackstone and Abu Dhabi-owned investment fund Mubadala, sources said.

Both bids ended up higher than analysts and rival suitors had expected heading into the auction for EMI, home to acts such as ColdPlay, Katy Perry and The Beatles.

Len Blavatnik’s Warner Music Group bid was believed to have bid in the region of $1.5 billion for the recorded music unit, while KKR-backed BMG Rights were offering $2.1 billion for publishing.

The deal will cement Universal’s position as the largest music company in the world, though it will likely have to divest assets outside of the US.

EMI’s share of the recorded market in France and Germany is in the region of 75 percent, while in the UK it is between 40 and 45 percent. In the U.S, EMI’s market share is less than 10 percent.

Citi declined to comment. Reps for the bidders couldn’t immediately be reached for comment.