12 Nov 2011

EMI to sell recorded music unit

6:50 am on 12 November 2011

EMI is to sell its recorded music unit for £1.2 billion to Universal Music.

Ownership of the UK music firm was acquired by Citigroup in February after previous owner Terra Firma failed a solvency test.

EMI's labels include Blue Note, Capitol, Parlophone and Virgin Records. It is home to artists including Coldplay, the Beatles and Pink Floyd.

Terra Firma, a private equity firm, bought EMI for £4.2 billion in 2007 just before the credit crunch.

Last year, it took Citigroup to court in the United States, accusing the bank of tricking it into paying an inflated price for EMI. Terra Firma lost the case.

The BBC says reports have suggested that EMI's music publishing business will go to a consortium led by Sony for more than $US2 billion.