Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of music kingpin Warner Music Group (NYSE: WMG) were hitting a high note today, gaining as much as 28% after The New York Times revealed that the company was potentially looking to sell itself.

So what: The Times actually reported that Warner is pursuing a two-track process that could have it either sell itself or buy Britain's struggling EMI. Warner has hired Goldman Sachs (NYSE: GS) as its financial advisor, and the company has reportedly seen buyout interest from the private equity firm Kohlberg Kravis Roberts (NYSE: KKR). EMI, meanwhile, has been caught in the middle of a legal battle between private equity firm Terra Firma and Citigroup (NYSE: C). Citigroup was the primary lender when Terra Firma acquired EMI and may end up with control of the company if Terra Firma isn't able to pay back the loans.

Now what: The article in the Times suggested that the push for a major change is coming from Warner's private equity backers -- a group that includes Thomas H. Lee, Bain Capital, and Providence Equity Partners. The firms have now been invested in Warner for longer than the typical private equity investment and may be looking for a way to shake things up and exit the investment. While the EMI deal seems like it could be a bit of a gamble, Warner -- as I noted back in November -- still has strong cash flow despite its accounting losses, and so it shouldn't be too surprising that it's attracting new private-equity interest.

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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.