Hello and welcome to our community! Is this your first visit?
Post By Cps235
Post By Carrie&Taylor
Post By Pi314CA
Ultimate Carrie Fan
EMI Group sold as two separate pieces to Universal Music and Sony
EMIís labels have put out records by the band Coldplay, shown in 2008, and many others. (Jay L. Clendenin, Los Angeles Times / June 2, 2008)
By Alex Pham, Los Angeles Times
November 12, 2011
The century-old EMI Group music company has been split in two and sold for $4.1 billion to Universal Music Group and Sony Corp. The absorption of the music giant leaves only three major record companies in control of an eroding industry.
The deal announced Friday calls for Universal to acquire EMI's recorded music division from EMI parent company Citigroup Inc. for $1.9 billion, and Sony to acquire the smaller but more lucrative music publishing business for $2.2 billion.
The two edged out rival bids from Warner Music Group and BMG Chrysalis. Warner had vied for the recorded music unit whose roster includes Norah Jones and Lady Antebellum, while BMG Chrysalis bid for EMI Publishing, whose catalog includes classics such as "Over the Rainbow" and "New York, New York."
With the deal leaving Warner, BMG and Universal as the only major players, antitrust regulators in the U.S. and Europe are expected to review the transaction for possible anti-competitive issues.
But the industry is shrinking, mainly because the big houses are struggling to remain profitable and now have to compete with the numerous alternatives that technology and the Internet have given to artists.
Globally, music sales sunk to $18.4 billion last year from $29.4 billion in 2005, according to a report from research firm Enders Analysis.
As a result, the power of record companies to dictate what albums are produced has been diluted, said Mike McGuire, a music analyst with market research firm Gartner Group. "The choke point that labels enjoyed for years because they owned all the recording studios and all the best producers are over," McGuire said.
Artists now have a plethora of ways to distribute and promote their music and are no longer beholden to record labels, he said. "Labels will have to compete on their ability to help artists."
That's a key reason why antitrust regulators may be likely to clear the deal, legal experts said.
"In a different era, a merger between any of those companies would raise major red flags at the antitrust division," said Mark Lemley, a professor at Stanford Law School.
Citing Sirius' 2008 merger with satellite radio rival XM, and Live Nation Entertainment's merger with Ticketmaster last year, Lemley said: "They're letting through mergers in even more concentrated markets, and even some that looked like the merger that created monopolies."
In addition, the recording business is not the crown jewel of EMI. It's the publishing business, which holds the rights to 1.4 million songs, including those by David Bowie, Stevie Wonder and many others.
Though smaller in size than its recorded music division, EMI's publishing group punched above its weight when it came to earnings. The group accounted for 29% of the company's revenue in 2010, the last year for which financial results were made available, but it made up 45% of EMI's operating profit.
The deal is a coup for Sony Chief Executive Howard Stringer, who has made music a priority for the company at a time when the industry has been ravaged by piracy and plummeting CD sales. In 2008, Stringer spent $1.2 billion to buy out Bertelsmann's 50% share in a joint venture, Sony BMG.
The sale brings to a close EMI's 114-year run. The independent music company was founded in 1895 by Emile Berliner, a Jewish German immigrant to the U.S. who is credited with inventing the gramophone.
It also caps years of financial and corporate turmoil for EMI. British private equity firm Terra Firma bought the company for $4.7 billion in 2007, using mostly borrowed funds. When it became clear early this year that Terra Firma could not service its enormous loans, Citigroup, the company's primary banker, took ownership of EMI. Citigroup wrote off 65% of EMI's debt with the intention of selling the music company by the end of the year.
Citigroup doesn't walk away free and clear from the deal, however. It must continue to shoulder the cost of a pension plan that covers 21,000 EMI employees, estimated to cost from $200 million to $600 million. Citigroup did not announce how Universal and Sony have arranged to deal with EMI's remaining $1.9-billion debt held by Citigroup.
EMI Group is sold as two separate pieces to Universal Music and Sony - latimes.com
Ultimate Carrie Fan
I wonder whether EMI's money-losing ability will now spread to the rest of the Big 4 and got the entire record labels industry in deep **** troubles...
EMI sale to rattle Music Row | The Tennessean | tennessean.com
In this one, it mentions Brad Paisley, but not Carrie. I hope they won't be separated? Just asking...anyone with better knowledge than I ?!!
I think that might be a misprint with Brad because it mentions that he is under Capital records along with LA and Keith Urban. Brad is under Sony/Arista unless he changed labels. I don't know if his name is incorrect in this article or not.
Originally Posted by rainbow1
Also, I wonder if all of this talk about buyouts and such will have any impact on when Carrie's fourth album will be released? Probably not but but I am just a little concerned. I hope we don't have to wait too much longer for her new album.
Ultimate Carrie Fan
Good news for me,i hate EMI,mostly EMI Mexico
The article should actually say that Brad is part of the EMI Publishing and not make it look like he is on Capitol which he isn't.
Originally Posted by nccountrygal
Insane Carrie Fan
I'm pretty sure you're right, and Brad's still with Arista - I'd guess that the writer was thinking of Dierks Bentley, and Brad's name somehow popped into his head.
Originally Posted by nccountrygal
I don't think it should affect Carrie. If Sony have spent too much and cut back on promotion, it may be bad news for their more vulnerable minor artists, or for artists who are refusing to record - but for their headline artists (and Carrie is), they should go into overdrive with new albums, to prevent Universal getting too far ahead.
It looks like Universal & Sony are about to get into a major bidding war for the rights to Big Machine, which will make everyone's favorite person Scotty Borchetta even richer than he already is.
Obsessed Carrie Fan
Don't know where to put this.
Kenny Chesney - “He’s very displeased with how Sony has handled him,” a source said. “He wants to be more mainstream.” We hear execs are “in shock” over the price. Looking to go to EMI.
Interesting, Kenny knows how a star is suppose to be treated. However, he is selling less since he is an older artist and has done nothing to reinvent himself. Same old same old beach music got old, IMO.
Ultimate Carrie Fan
First of all, consider the source of this information about Kenny: Page Six. It's a gossip column essentially, so take it with a grain of salt lol. There, of course, could be elements of truth to this story.
I can actually see Kenny thinking he should be more mainstream. He strikes me as that type of artist. He has also always struck me as being a bit difficult to work with to some degree. I know CMT Canada has made several snarky remarks over the years about how Kenny refuses to grant them interviews when he is in Canada. Maybe I'm wrong, and Kenny is great though . He does seem to be kind to his fellow artists, so that's good. If Kenny is in fact unhappy at his current label, I wish him well in finding a label that works for him . He should take into consideration that he is the top dog on BNA, though.
Sony Wins Approval to Buy EMI Music Publishing
Published: Friday, 29 Jun 2012 | 12:32 PM ET
The Federal Trade Commission has approved a Sony-led consortium's purchase of EMI Music Publishing, without having to make any divestitures, the FTC said on Friday.
U.S. antitrust regulators gave the nod to the $2.2 billion deal in a brief letter to the companies.
The agency is expected to issue a decision in coming months on a related and more controversial deal ó Universal Music's plan to buy EMI's recorded music catalog from Citigroup for $1.9 billion.
In its letter, the FTC said that it had been looking at the transaction but upon review found no reason for further action.
"Accordingly, the investigation has been closed," the FTC said in its letter to Sony.
European antitrust regulators gave Sony approval to close its purchase of the EMI unit in April on condition it sell the worldwide publishing rights of artists, including Robbie Williams and Lenny Kravitz.
The consortium proposed a deal with Europe regulators in which they would sell the assets to satisfy concerns that the deal would break antitrust law.
Other assets to be sold are Virgin UK, Virgin Europe, Virgin U.S. and Famous Music UK, and include artists such as Gary Barlow, Ozzy Osbourne, Ben Harper, Placebo and The Kooks.
Sony, with Blackstone Group, Abu Dhabi's Mubadala Development, Raine Group and music and film mogul David Geffen, won the bidding for EMI Publishing last year in a deal that will put Sony on top in global music publishing.
Before the deal, Sony was the fourth biggest player in music publishing, behind Vivendi's Universal Music Group, EMI and Warner Music.
The agreement will push it into first place, owning the rights to about 3 million songs, such as "New York, New York" and Adele's recent smash "Rolling in the Deep".
Citigroup is selling EMI after taking over the group when its previous owner, private equity group Terra Firma, defaulted on borrowings from the investment bank.
Link: News Headlines