EMI set to be split, sold
Source: Agencies |
November 13, 2011, Sunday
|
Print Edition
Print Edition
EMI Group Ltd, the iconic British music company that is home to The Beatles, Coldplay and Katy Perry, is to be split and sold for US$4.1 billion.
The deals will open its buyers, Universal Music and Sony/ATV, to regulatory scrutiny as they increase their dominance of the music industry.
Universal Music Group said on Friday that it will pay 1.2 billion pounds (US$1.9 billion) for the recording division, joining Universal artists, including Lady Gaga and Eminem, with EMI superstars such as David Guetta and Lady Antebellum.
A consortium led by Sony/ATV announced a separate deal on Friday to pay US$2.2 billion for EMI's publishing division. That business is in charge of songwriting copyrights for such artists as Rihanna and Norah Jones.
Sony/ATV, a joint venture between Sony Corp and the Michael Jackson estate, is a 38 percent partner in the consortium, according to a person familiar with the situation who sought anonymity. Other parties include Mubadala Development Co, Jynwel Capital Ltd, the Blackstone Group and David Geffen.
The two-part sale, if approved by regulators, would further increase Universal Music's dominance in recorded music and springboard Sony/ATV into the top spot as a music publisher, according to Impala, an association of European independent music firms that is against the deal.
The purchases would give Universal Music and Sony/ATV undue negotiating power over artists and distributors of music, even over the world's biggest music store, Apple Inc's iTunes, Impala said.
Both deals are expected to be carefully reviewed in Europe, the United States, Japan and Australia. Even if regulators approve, they could force the sale of key assets or attach other terms.
The deals will open its buyers, Universal Music and Sony/ATV, to regulatory scrutiny as they increase their dominance of the music industry.
Universal Music Group said on Friday that it will pay 1.2 billion pounds (US$1.9 billion) for the recording division, joining Universal artists, including Lady Gaga and Eminem, with EMI superstars such as David Guetta and Lady Antebellum.
A consortium led by Sony/ATV announced a separate deal on Friday to pay US$2.2 billion for EMI's publishing division. That business is in charge of songwriting copyrights for such artists as Rihanna and Norah Jones.
Sony/ATV, a joint venture between Sony Corp and the Michael Jackson estate, is a 38 percent partner in the consortium, according to a person familiar with the situation who sought anonymity. Other parties include Mubadala Development Co, Jynwel Capital Ltd, the Blackstone Group and David Geffen.
The two-part sale, if approved by regulators, would further increase Universal Music's dominance in recorded music and springboard Sony/ATV into the top spot as a music publisher, according to Impala, an association of European independent music firms that is against the deal.
The purchases would give Universal Music and Sony/ATV undue negotiating power over artists and distributors of music, even over the world's biggest music store, Apple Inc's iTunes, Impala said.
Both deals are expected to be carefully reviewed in Europe, the United States, Japan and Australia. Even if regulators approve, they could force the sale of key assets or attach other terms.
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