According to reliable sources, Sony Corp. (OTCMKTS:SNEJF) has already held introductory discussions to be able to acquire majority shares in EMI Music publishing since its owner hopes to make a catch on the streamed music expanding market.
Mubadala Investments Company had already rolled out the process of reaching out to suitable potentials for the Catalog which bears more than 2 million songs including hits from world renowned hit makers.
The company has already reached out and has held talks with Sony and other possible buyers who include the entertainment groups and other potential financial bidders in a bid to gauge the prices just before it can kick off its plans by June.
If Sony acquires the platform, it is capable of stamping its base as the leading music publisher as the paid live stream services skyrocket as the valuations for the copyrights for the music also rises.
Sony already owns 40 percent of the company, however Mubadala has already signaled a possibility of selling off its majority shareholding and it plans on initiating a move that will have Sony buy the remaining shares or have the whole company sold off.
If Sony fails to acquire the stake, it may risk losing the Catalog to one of its all-time biggest competitors
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Mubadala is seeking to sell off its shareholding at a valuation of about $4billion which is almost a double price over which Sony acquired their shares about 6 years ago hence this could end up being the largest music industry transaction.
Kenichiro Yoshinda the CEO, Sony insinuated tht he is interested in and likes the businesses which have recurring revenues. He was also of the opinion that music publishing offers the owners a steady cash source compared to the more Cyclical music business.
Sony had about $12 billion in cash equivalents and cash by the close of December and on February carried forward its profit estimations for the year to March.
The growth for the paid streaming services have greatly boosted the music industry sales for a consecutive 3 years and has been able to lure investors to fling on Catalogs in which the publishers own the song while the label shall own the songs recording.