Sony Said to Be in Talks to Buy Record Label of Taylor Swift

November 08, 2011, 10:55 PM EST

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By Andy Fixmer

Nov. 9 (Bloomberg) -- Sony Corp. is negotiating to acquire Big Machine Label Group, home to country music acts including Taylor Swift and Rascal Flatts, according to two people with knowledge of the talks.

Big Machine, founded by Scott Borchetta in 2005, may fetch more than $200 million, said the people, who werent authorized to talk publicly. Negotiations are at an early stage and an agreement may not be completed, they said. Universal Music Group may also enter the bidding, one of the people said.

Doug Morris, Sony Musics chairman and chief executive officer since July, is recruiting hit-making producers. Last week Morris hired Lukasz Dr. Luke Gottwald, who has 20 No. 1 songs, to start a new Sony label. Borchetta, with a roster of the biggest country acts, would run Sonys Nashville, Tennessee- based operation as part of the sale, the people said.

Liz Young, a spokeswoman for Sony Music in New York, declined to comment and Nikki Burns, a spokeswoman for Big! Machine , couldnt comment.

The New York Times reported earlier Sonys hiring of Dr. Luke, and said that Sony and Vivendi SA-owned Universal Music may bid for Big Machine and for another label, Cash Money Records, home to rappers Lil Wayne, Drake and Nicki Minaj.

Sony paid $10 million to Dr. Luke and has committed another $55 million over five years to his label, Kemosabe Records, the people said.

Andy Kipnes, a spokesman for Dr. Luke, didnt respond to messages seeking comment.

Universal Music, where Morris departed as chairman in March, is under contract to distribute Big Machine records through 2012, the people said.

Sony Music

Sony, based in Tokyo, is investing in its music business, which contributed $315.2 million in operating profit on $1.29 billion in revenue in the three-month period ended Sept. 30.

Through its Sony/ATV Music Publishing partnership with Michael Jacksons estate, the company has offered about $2 billion for EMI Groups publishing operation, people said earlier. Citigroup Inc. is selling London-based EMI after it seized the company in February for falling out of compliance with loan covenants.

--Editors: Anthony Palazzo, Rob Golum

To contact the reporter on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net