A wholly owned Sony subsidiary, Sony Corporation of America, reached an agreement to buy all of the interest in EMI Music Publishing that is currently held by a consortium of Abu Dhabi's Mubadala Investment for about $1.9 billion.
Sony said it expects to pay a total of about $2.3 billion for the majority stake in EMI Music Publishing, which it hopes will strengthen its entertainment portfolio, the Japanese company said Tuesday.
That additional $400 million will be paid to existing stakeholders at EMI Music Publishing in order to facilitate the acquisition, a representative from Sony clarified to CNBC.
Mubadala's consortium owns about 60 percent equity interest in the music publisher, while Sony holds most of the rest. But Mubadala's financial investment arm has managed EMI Music Publishing on behalf of investors since 2012.
If the transaction goes through, Sony will indirectly own about 90 percent of the equity interest in EMI Music Publishing, which would become a consolidated subsidiary, Sony said in a statement. Still, the final purchase price remains subject to customary closing adjustments.