Viacom explores possible sale of music publisher

NEW YORK (Reuters) - Media conglomerate Viacom Inc. said on Monday it may sell its music publishing business, which includes material from contemporary hit artists Eminem and Shakira.

Viacom, which owns the Paramount Pictures movie studio and MTV Networks cable channel, has hired UBS Investment Bank to explore strategic alternatives to boost the value of the division, Famous Music.

Famous Music was founded in 1928 by Paramount's predecessor, the Famous-Lasky Corp., to publish music that accompanied its movies.

A sale could attract a broad range of potential buyers from the owners of music publishing businesses seeking to expand their catalogs to private equity buyers for what is considered a highly coveted catalog, one music industry source said.

Universal Music Group, majority owned by France's Vivendi, is waiting for regulatory approval on its deal to purchase BMG Music's publishing operations.

The $2.1 billion deal announced late last year would vault Universal Music to the top global publishing spot.

Reuters/Nielsen