Business

BMG, Sony may team on Warner Music

KKR’s BMG Rights Management, a joint venture between Bertelsmann and private-equity firm KKR, is talking to Sony Corp. about teaming on a deal to acquire Warner Music Group, The Post has learned.

While BMG has proposed buying all of Warner, BMG is primarily interested in Warner’s music-publishing arm, Warner/Chappell and has talked to Sony Music about taking over the recorded-music side of the business, sources said.

Sony is likely to face antitrust scrutiny given its 28.4 percent market share combined with Warner’s 19.4 percent share, although those figures include both music and publishing.

Both companies are among the bidders for the No. 3 music label, run by Edgar Bronfman Jr.

Warner has hired Goldman Sachs to either sell itself off or possibly buy rival British music giant EMI, controlled by lender Citigroup.

BMG was eliminated from the first round of the sale process after submitting a bid that was deemed too low, but came back with a higher offer in the second round, sources said.

BMG’s bid was around $2.8 billion, according to the Financial Times.

Warner Music has received 10 bids for all or parts of the business, according to sources.

In addition to Sony and BMG, other bidders include: Lichenstein-based private investment firm Tamares, run by billionaire Poju Zabludowicz; Len Blavatnik’s Access Industries; Ron Burkle’s Yucaipa; Platinum Equity; and private-equity firm Permira.

The sale process is expected to wind up by the end of March, said one source.

Separately, Citigroup is also holding talks with many of the same players about the sale of EMI.