Sony Music Entertainment has emerged as one of the parties vying to buy the live music division of entertainment retailer HMV.

It is understood that AEG, owner of the O2 arena, is also among several parties interested in acquiring HMV Live, which operates 13 music venues and five festivals.

According to The Independent, HMV Live has started making presentations to potential buyers, ahead of the deadline for second round bids later this month.

The struggling entertainment retailer HMV put its live business up for sale in December to help reduce mounting debts. City analysts value HMV Live, which is the most profitable part of the retailer’s business, at £60m to £120m.

In the 26 weeks to October 29 HMV recorded a loss from continuing operations, before tax and exceptionals, of £36.4m. However, its live business more than doubled operating profit to £3.4m over the period.