A JAPANESE company is to buy 25 per cent of the record business of the Virgin Group, which Richard Branson took private in October of last year. Virgin, which owns the sixth largest record company worldwide, will make the formal announcement today in London, writes Mary Fagan. The buyer is said not to be one of the large five record companies - Thorn EMI of the UK, Sony, Warner, Polygram and Bertelsman - which between them dominate 70 per cent of world sales. Virgin last night refused to comment, but estimates are that the deal could be worth well in excess of £50m, making it one of the largest investments by a Japanese organisation in a UK company. With a turnover of about £250m, Virgin Records is one of the few independents left in the music business. In August the Virgin Group sold its film and video distribution arm, Virgin Vision, to Management Company Entertainment in the US. Virgin last night refused to comment, but estimates are that the deal could be worth well in excess of £50m, making it one of the largest investments by a Japanese organisation in a UK company. With a turnover of about £250m, Virgin Records is one of the few independents left in the music business. In August the Virgin Group sold its film and video distribution arm, Virgin Vision, to Management Company Entertainment in the US. Virgin last night refused to comment, but estimates are that the deal could be worth well in excess of £50m, making it one of the largest investments by a Japanese organisation in a UK company. With a turnover of about £250m, Virgin Records is one of the few independents left in the music business. In August the Virgin Group sold its film and video distribution arm, Virgin Vision, to Management Company Entertainment in the US. But in spite of clear signals from Virgin Records that it wants to remain independent, speculation was rife that the purchaser might be Sony. Industry observers fear that this would be another nail in the coffin of the independent record industry. Virgin last night refused to comment, but estimates are that the deal could be worth well in excess of £50m, making it one of the largest investments by a Japanese organisation in a UK company. With a turnover of about £250m, Virgin Records is one of the few independents left in the music business. In August the Virgin Group sold its film and video distribution arm, Virgin Vision, to Management Company Entertainment in the US. Virgin last night refused to comment, but estimates are that the deal could be worth well in excess of £50m, making it one of the largest investments by a Japanese organisation in a UK company. With a turnover of about £250m, Virgin Records is one of the few independents left in the music business. In August the Virgin Group sold its film and video distribution arm, Virgin Vision, to Management Company Entertainment in the US. In 1988 the Japanese giant bought CBS records for $;2bn and last week it announced that it would take control of Columbia pictures. Virgin sources said yesterday, however: "We want a minority partner. The last thing we want is to lose our independence to one of the big five." The deal is the latest in a spate of mergers and takeovers in the music publishing business. Earlier this year, Thorn EMI paid £187m to US-based SBK for a large catalogue of songs, and subsequently also bought a half share in Chrysalis Records in the UK. Since then, Polygram has bought Island Records and has anounced the takeover of A&;M records. Both Virgin and Thorn EMI are thought to be vying for the lucrative Jobete in Detroit, which controls the publishing rights to a catalogue of 15,000 Motown titles. The decision to look for a significant equity partner appears to be Virgin's attempt to keep out of the clutches of the five majors while remaining a credible force in the worldwide music business. A JAPANESE company is to buy 25 per cent of the record business of the Virgin Group, which Richard Branson took private in October of last year. Virgin, which owns the sixth largest record company worldwide, will make the formal announcement today in London, writes Mary Fagan. The buyer is said not to be one of the large five record companies - Thorn EMI of the UK, Sony, Warner, Polygram and Bertelsman - which between them dominate 70 per cent of world sales. Virgin last night refused to comment, but estimates are that the deal could be worth well in excess of £50m, making it one of the largest investments by a Japanese organisation in a UK company. With a turnover of about £250m, Virgin Records is one of the few independents left in the music business. In August the Virgin Group sold its film and video distribution arm, Virgin Vision, to Management Company Entertainment in the US. But in spite of clear signals from Virgin Records that it wants to remain independent, speculation was rife that the purchaser might be Sony. Industry observers fear that this would be another nail in the coffin of the independent record industry. In 1988 the Japanese giant bought CBS records for $;2bn and last week it announced that it would take control of Columbia pictures. Virgin sources said yesterday, however: "We want a minority partner. The last thing we want is to lose our independence to one of the big five." The deal is the latest in a spate of mergers and takeovers in the music publishing business. Earlier this year, Thorn EMI paid £187m to US-based SBK for a large catalogue of songs, and subsequently also bought a half share in Chrysalis Records in the UK. Since then, Polygram has bought Island Records and has anounced the takeover of A&;M records. Both Virgin and Thorn EMI are thought to be vying for the lucrative Jobete in Detroit, which controls the publishing rights to a catalogue of 15,000 Motown titles. The decision to look for a significant equity partner appears to be Virgin's attempt to keep out of the clutches of the five majors while remaining a credible force in the worldwide music business.