EMI hold talks with Blackstone - report

EMI was today reported to have held talks with private equity group Blackstone about a possible £2.5bn (€3.58bn) deal to take the music giant private.

The discussions are thought to be among several that EMI has held in recent weeks in order to examine its strategic options, the Sunday Times said.

London-based EMI was unavailable for comment today.

The group’s recorded music division has been struggling in the face of falling sales, but it also has a more lucrative music publishing arm which receives royalties from a strong back catalogue, including the James Bond theme.

If successful, New York-based Blackstone is thought likely to sell off the music recording arm which houses stars such as Robbie Williams and Coldplay.

EMI experienced a 12.6% decline in sales of recorded music to £1.8bn (€2.58bn) during the year to March 31 as music piracy, lacklustre demand and the disruptive effect of restructuring at EMI hit home.

Last year the company axed 1,900 jobs and trimmed its roster of artists in response to the worldwide downturn in CD sales, which now account for around 53% of total turnover at the company.

The recorded music arm is based around the Capitol and Virgin labels.

The speculation surrounding EMI comes as Blackstone looks to boost its presence in Europe following the opening of a London office in 2000.

It already owns upmarket hotels the Savoy and Claridge’s.

Today’s report added that a possible tie-up involving EMI’s rivals AOL Time Warner and Bertelsmann could give extra impetus to Blackstone’s plans.

EMI shares fell as low as 80p earlier this year after standing at 390p in 2002.