EMI selling China business to co.

Typhoon to take over music activities

By CLIFFORD COONAN

EMI is selling its music businesses in China, Hong Kong and Taiwan to its Chinese joint venture partner Typhoon, run by former head of EMI Music Asia Norman Cheng, in a deal reportedly worth HK$100 million ($12.8 million).

Some of Asia's biggest stars, including Jolin Tsai, David Tao and A-mei from Taiwan; Hu Yanbin and Xu Wei from mainland China; and Cheng's son, Hong Kong star Ronald Cheng, will now be signed to Typhoon Group.

EMI has agreed to sell Typhoon its stakes in Typhoon Music in China, Gold Label in Hong Kong and EMI Music Taiwan.

Typhoon also becomes EMI Music's exclusive licensee for the physical-format distribution of international repertoire in China and Taiwan. EMI will maintain its own digital distribution in those countries.

Typhoon Group will handle the entertainers' albums and film releases in China, while EMI will continue to promote them overseas. Typhoon will also help EMI's Western artists explore the Chinese market.

Cheng is a well-known biz figure in Hong Kong, a guitarist who has helped boost the popularity of people like Teresa Teng, Leslie Cheung, Andy Lau and Jacky Cheung.

Chinese website Sohu.com reported the financial details, but the figures were not confirmed by EMI or Typhoon.