EMI Could Sell Recorded Music Business to Google, Warner, or News Corp.

The smallest major record label, EMI, was acquired by Terra Firma earlier this year, and according to a document the company sent to potential investors, Terra Firma may be looking to get out of the recorded music business in 5 years.
Terra Firma is in the process of selling 15 percent of its interest in EMI, and, according to the investor document, plans to sell off its recorded music business in 2012. The document named Warner Music Group, Google, and News Corp. as potential buyers.
To attract an asking price of $19.4 billion -- nearly triple what Terra Firma paid -- the company says it can cut costs by $270 million per year. (EMI's rumored urge to cut funding to the RIAA is probably related to these general cutbacks.) . While cutting costs, Terra Firma says it will increase yearly profits from $126 million in 2007 to $1 billion in 2012. The market for recorded music is reportedly declining 10 percent annually.

http://blog.wired.com/music/2007/11/emi-could-sell.html