A sale of the company, which was founded in 2005 by Scott Borchetta, could fetch more than $200m (?124.8m). That figure could increase, however, if reports of interest from Universal Music turn out to be true.

The move comes as Sony Music chairman Doug Morris appointed producer Lukasz Gottwald to the Sony stable last week with the intention of founding a new label division, Kemosabe Records. The company is expected to become operational in January 2012 and Gottwald will have ...