EMI Sold in Two Halves

November 22, 2011

EMI Group has been sold in two parts for $4.1 billion.  The deal announced Friday calls for Universal to acquire EMI’s recorded music division from EMI parent company Citigroup Inc. for $1.9 billion, and Sony to acquire the smaller but more lucrative music publishing business for $2.2 billion.

The two companies outbid Warner Music Group and BMG Chrysalis. Warner had vied for the recorded music unit whose roster includes Norah Jones and Lady Antebellum, while BMG Chrysalis bid for EMI Publishing, whose catalog includes classics such as “Over the Rainbow” and “New York, New York.”

Citigroup has owned EMI since February, when it seized the company from former owner Terra Firma Capital. The private-equity firm, which bought EMI in 2007, was close to a default on the massive debts it took on as part of that purchase.