Sony/ATV Begins Virgin Music Auction

Publishing company Sony/ATV are believed to have started the auction process for the rights of more than 30,000 songs from the Virgin Music and Famous UK catalogues – including material from Iggy Pop, Tears For Fears and Culture Club.

Sony/ATV – the publishing division of Sony Music and a joint venture with the estate of Michael Jackson – bought the publishing arm of EMI Music in the company's split and sale last year for $2.2 billion, while the recorded music division went to Universal.

Both deals were subject to anti-trust regulations and when the Sony/ATV-led deal was confirmed in June, it made the company the world leader in music publishing. Certain concessions had to be agreed to for the deal to go through, though, and one such divestment is the sale of the rights to these 30,000 works.

Reuters are reporting that last week non-disclosure agreements were sent out by Sony/ATV to over 20 potential buyers, including Warner Music Group, Primary Wave Music, Round Hill Music, Imagem Music, Kohlberg Kravis & Roberts & Co LP, Platinum Equity Partners and Thomas H. Lee Partners.

The non-disclosures are likely to relate to the confidential financial information of the company being sold, which buyers need to be privy to.

The auction is being run by John Branca of law firm Ziffren Brittenham who in the past has represented Michael Jackson, Aerosmith and The Rolling Stones.