Coke found another buyer for its home-video unit.

Sources said that Coca-Cola Co. is negotiating to sell its Embassy Home Entertainment subsidiary to a group led by Barry Spikings, former chief executive of EMI Films Ltd., for $85 million plus the assumption of liabilities. Spikings was unavailable for comment, and Coca-Cola Executive Vice President Frank Biondi Jr. declined to comment. Talks broke off earlier this month to sell the company to Andre Blay, the unit’s chief executive. Blay has sued Coca-Cola in Los Angeles Superior Court, alleging breach of contract.