The Financial Times reported today that Warner Music Group is just now starting its due diligence and is in talks with private equity groups, including Terra Firma, about acquiring EMI's recorded music division once EMI's sale is complete.

Some believe WMG's efforts to acquire EMI are being hampered by the EU's decision to take another look at the Sony BMG merger. A sale to Terra Firma would give cash to EMI shareholders in a short period of time while a sale to WMG could result in uncertain regulatory scrutiny.

Just yesterday, the EU approved the sale of BMG Music Publishing to Universal Music Group. UMG agreed to rid itself of some publishing assets to help gain approval. Similarly, WMG might be better off waiting to buy just a piece of EMI from a private equity firm.