Citigroup has finally managed to sell off large record label EMI.
Universal Music Group has purchased the recorded-music unit for $1.9 billion, while Sony Music has purchased the publishing arm of the label for $2.2 billion.
EMI has been up for sale since earlier this year, after Citigroup was forced to take it over. The former owner could not pay its debt and lost the collateral.
Universal and Sony were not expected to be the winners in the auction, where Warner Music and Bertelsmann were long considered the favorites.
Citi was hoping for $4 billion for the businesses, but most industry analysts had expected them to receive a figure closer to $3.3 billion given the credit markets.
Regulatory approval of the deals are expected to take up to 20 months, and Universal will most likely have to sell hundreds of millions worth of non-core assets.
EMI has been up for sale since earlier this year, after Citigroup was forced to take it over. The former owner could not pay its debt and lost the collateral.
Universal and Sony were not expected to be the winners in the auction, where Warner Music and Bertelsmann were long considered the favorites.
Citi was hoping for $4 billion for the businesses, but most industry analysts had expected them to receive a figure closer to $3.3 billion given the credit markets.
Regulatory approval of the deals are expected to take up to 20 months, and Universal will most likely have to sell hundreds of millions worth of non-core assets.
