Lava Records founder Jason Flom and ex-Bug Music CEO John Rudolph have reportedly teamed up to bid on EMI assets that will be sold off by Universal Music Group. A source tells Billboard.biz that the pair are expected to place a bid once UMG officially begins auctioning off pieces of EMI, as per the UMG-EMI merger agreement.
Universal's bankers are still working on non-disclosure agreements and are a few weeks away from beginning the auction process, according to Billboard's sources. According to the terms of UMG's agreement with the European Commission, any EMI assets sold off must go to a buyer with a track record of previously heading up a music company and management experience.
Meanwhile, the Financial Times reported earlier this week that nine groups are in line to attempt to buy the Parlophone label from UMG. According to the paper, Warner Music Group, Blackwell Fuller (led by American Idol creator Simon Fuller), BMG, Ron Perelman's investment company MacAndrews & Forbes and Island Records founder Chris Blackwell are all interested in Parlophone. The FT's sources say that WMG, Blackwell Fuller and Perelman are all interested in other EMI assets, including the Sanctuary and Mute labels, as well as the NOW! That's What I Call Music brand.