Sony Rejoin With BMG To Raid EMI Labels

Sony have rejoined with BMG to launch a bid for former EMI labels, including Parlophone, currently looking for a home after their parent was bought by the Universal Music Group last year.

According to the Financial Times, Sony and Bertelsmann/KKR-owned music rights management group BMG have reunited for the first time since the Sony BMG partnership split four years ago. In 2011 BMG had bid for Warner Music Group assets (won by Len Blavatnik's Access Industries) before they were beaten to EMI's publishing division by Sony/ATV.

Universal won the recorded music division, which Sony were also eyeing, and as part of the $1.9 billion acquisition, subject to much regulatory approval, the world's biggest label agreed to divest large chunks of the business, including some of its iconic labels.

Parlophone is perhaps the most prized asset of the sale, with bands like Coldplay, Gorillaz and Kylie Minogue on its roster, although Universal may try and keep some of the most valuable acts on its own books. The move by Sony and BMG - likely to be after seperate parts of the assets - puts them in direct competition with previous-favourites Warner Music, who got nothing out of the EMI sale and lobbied against the eventual purchase.

The Times report that other major bidders for the EMI divestments include Ronald Perelman's investment company MacAndrews & Forbes and a partnership between American Idol founder Simon Fuller and Island Records founder Chris Blackwell.

Not commenting on the partnership itself, a BMG spokesperson told the Times, “We have already demonstrated with our bids for publishing copyrights from Sony and the Mute Records catalogue from Universal that BMG is an active player in the reshaping of the music industry. To that end we will do what is necessary to make any bids as competitive as possible.”