Buyers eye up EMI’s vast catalogue
Sony has held preliminary talks to acquire a majority stake in EMI Music Publishing, say people with knowledge of the matter, as EMI’s Abu Dhabi-based owner seeks to cash in on the booming market for streamed music.
Mubadala Investment has begun talking to potential suitors for the catalogue of more than 2.1 million songs, which includes hits from Beyonce and Carole King, said the people, who asked not to be identified.
Adding EMI’s extensive catalogue would solidify Sony’s position as the largest music publisher, as paid streaming services proliferate and valuations for music copyrights soar. The Tokyo-based company already owns almost 40 per cent of EMI, and operates the business.
Mubadala is seeking a valuation of at least US$4 billion ($5.46b) for EMI, the sources people said. If the parties fail to reach an agreement, Sony risks losing the catalogue to one of its largest competitors. Billionaire Len Blavatnik, the owner of Warner Music, has expressed interest in EMI, two of the sources said. Sony and Mubadala declined to comment.
Music publishing has long offered owners a steady source of cash, in contrast with the more cyclical recorded music business, which is dependent on hits and retail sales, and rises and falls depending on the success of new releases.
Growing paid streaming services from Spotify and Apple have boosted music-industry sales for three years in a row and enticed investors to splurge on catalogues.