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Music News: Universal wins EU approval for EMI buy, must sell assets
Member Since: 3/7/2011
Posts: 2,187
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Universal wins EU approval for EMI buy, must sell assets
It's now official.
3 Major Labels Left:
-Universal Music Group
-Sony Music Group
-Warner Music Group
http://www.reuters.com/article/2012/...8KL92L20120921
Quote:
BRUSSELS, Sept 21 (Reuters) - Vivendi's Universal Music Group clinched EU regulatory approval on Friday to buy EMI's recorded music unit for $1.9 billion after agreeing to sell record labels that bring in nearly a third of the British company's revenues.
The combined group, which would include a vast library of current top-selling and legendary names including Jay-Z, Kanye West, Katy Perry and Pink Floyd, proposed the asset sales after EU regulators raised concerns over the potential market power of the combined group.
Universal said the assets to be sold amounted to 30 percent of EMI's group revenues or roughly 10 percent of sales for the combined group.
It will sell Parlophone, one of EMI's most prized labels with star acts such as Coldplay and Queen. The Beatles will not be included in the disposals.
Also on the block will be the Mute, Ensign and Chrysalis labels, EMI Classics, Virgin Classics, EMI's share of the "NOW! That's what I call music" compilation business, and EMI units in France, Spain, Belgium, Denmark, the Czech Republic, Poland, Portugal, Sweden and Norway.
Universal will also sell its brands Sanctuary, Co-Op Music Ltd, King Island Roxystar, MPS Records, its share in Jazzland, and its Greek unit.
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on an unrelated note, here's the market/stock value of the 2 Biggest South Korean Labels:
SM Entertainment
http://www.bloomberg.com/quote/041510:KS
1,227,648.50 million won or $1.1 billion USD
YG Entertainment (home of PSY)----the stock just went up from 60,000 won per share to 80,000 per share in the last few days. Maybe the worldwide success of Gangnam Style has something to do with it.
http://www.bloomberg.com/quote/122870:KS
815,349.06 or $730 million USD
It's crazy that the value of these companies is equal to the value of EMI recorded music unit. These 2 companies growth is largely thank to international growth of kpop and Kpop international growth is in large part thank to Youtube.
Quote:
Major labels 1988–1998 (Big Six)
Warner Music Group
EMI
Sony Music (known as CBS Records until January 1991 then known as Sony Music thereafter)
BMG Music
Universal Music Group
Polygram
Major labels 1998–2004 (Big Five)
Warner Music Group
EMI
Sony Music
BMG Music
Universal Music Group (Polygram absorbed into UMG)
Major labels 2004–2008 (Big Four)
Warner Music Group
EMI
Sony BMG (Sony and BMG joint-venture)
Universal Music Group
Major labels 2008–2011 (Big Four)
Sony Music Entertainment
EMI Group
Warner Music Group
Universal Music Group
Major labels (Big Three) 2012-onward
Sony Music Entertainment
Warner Music Group
Universal Music Group
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Member Since: 9/13/2011
Posts: 14,715
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NOOOOOO! 
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Banned
Member Since: 4/30/2011
Posts: 38,486
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 EMI. Universal better give Katy more promo. 
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Member Since: 8/20/2011
Posts: 12,590
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 EMI RIP
The only positive is that Rihanna and Katy collab will be more likely to happen because Katy is with Universal now.
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Member Since: 11/11/2011
Posts: 15,290
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Does this mean the end of Katy's outstanding and incomparable promo?
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Member Since: 3/7/2011
Posts: 2,187
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Quote:
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Universal said the assets to be sold amounted to 30 percent of EMI's group revenues or roughly 10 percent of sales for the combined group.
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so basically, Univeral is buying 70% of EMI and selling the other 30% in order to gain government approval.
And it's crazy that Gangnam Style worldwide success increased the stock value of YG Entertainment from something like $530 million to $730 million in a space of a few days. $60 per share to $80 per share.
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Member Since: 9/13/2011
Posts: 14,715
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Quote:
Originally posted by katyperryismylife
Does this mean the end of Katy's outstanding and incomparable promo? |
I think Capitol will function as it is. It will just move under the Universal Music Group instead.
I could be wrong though.
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Member Since: 9/4/2012
Posts: 12,421
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poor EMI 
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Member Since: 1/24/2012
Posts: 3,704
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Shame 
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Member Since: 3/7/2011
Posts: 2,187
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Quote:
Originally posted by B2R4D
I think Capitol will function as it is. It will just move under the Universal Music Group instead.
I could be wrong though.
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I think you're right. They won't change Capitol. Think of it as another flagship label for Universal like Interscope.
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Member Since: 7/15/2012
Posts: 1,855
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No!!!! Sad news for Katy... I hope they give her the same promo that Capitol. But I don't think so. 
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Member Since: 12/3/2010
Posts: 19,759
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SM's assets. 
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Member Since: 11/15/2011
Posts: 13,901
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that means katy can work with Dr. Luke again 
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Member Since: 3/7/2011
Posts: 2,187
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Quote:
Originally posted by cheers09
that means katy can work with Dr. Luke again |
That would be true if Sony bought EMI.
Quote:
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While terms of the deal were not disclosed, sources say that Sony is paying $60 million dollars to Dr. Luke to start a new label and produce music exclusively for the company.
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Read more at http://www.billboard.biz/bbbiz/indus...sgAlieWlEcU.99
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Member Since: 4/25/2011
Posts: 41,661
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Not Coldplay on Universal
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Member Since: 11/15/2011
Posts: 13,901
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Quote:
Originally posted by Dust2
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damn 
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Member Since: 1/6/2012
Posts: 12,011
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RIP EMI
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Member Since: 8/20/2011
Posts: 12,590
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I posted this in another thread but this is a brief Q&A on everything you need to know.
Quote:
Q: When will Universal take control of EMI?
September 28, according to an email to EMI staff from CEO Roger Faxon (assuming the deal is approved in the U.S. by the Federal Trade Commission).
Q: What EMI labels must Universal sell?
Universal must sell Parlophone, Chrysalis, Mute and a long list of local labels listed below. The Parlophone sale is part of the divestment of EMI Recordings Limited.
Q: What artists are on the labels being sold?
Parlophone is home to Coldplay, David Guetta, Lilly Allen, Blur, Tinie Tempah, Pink Floyd, David Bowie, Tina Turner, Duran Duran, Cliff Richard, Kylie Minogue and Lilly Allen. EMI France has David Guetta's catalog.
Q: What else must Universal sell?
Universal must also sell Co-Op Music http://www.cooperativemusic.com/, a transnational marketing and distribution business that licenses independent labels, and EMI's 50% stake in the "Now That's What I Call Music" compilation joint venture and continue licensing its repertoire for the compilation series for the next ten years.
Q: Will Universal need to sell its rights to the Beatles?
No, Universal will have the rights to the Beatles' catalog, as did EMI.
Q: What EMI artists are staying with Universal?
Among the artists being absorbed by Universal are Katy Perry, Lady Antebellum, Keith Urban, the Beach Boys, Norah Jones, Foo Fighters, Eric Church and Daddy Yankee.
Q: Who can purchase these assets?
The Commission says purchasers must be "already active as a record company" or "have a proven track record in the music industry." The Commission set this rule in hopes a strong competitor emerges against Universal. Warner Music Group, Sony Music Entertainment and BMG Rights Management, a large owner of publishing assets, are likely bidders. Platinum Equity and MacAndrews & Forbes Holdings were rumored to be interested in acquiring EMI assets but don't have the track record desired by the Commission.
Universal-EMI Merger: A Timeline Of Events
Q: How long does Universal have to sell these assets?
About six months, according to reports.
Q: Can Universal buy back its assets?
Universal cannot buy any EMI assets it sells as a result of this acquisition for a period of ten years.
Q: What happens to EMI businesses until they are sold?
According to Faxon's email to staff, businesses that aren't being folded into Universal will be gathered into an independent unit and report to a "hold separate manager" who will report to a trustee.
Q: Are the rights divested worldwide and cover digital and physical formats?
Yes. The European Commission believes this will "ensure a viable and competitive exploitation of the divested artists and catalogue by the purchaser of the assets."
Q: Will the merger hurt digital innovation by giving Universal more market share?
The Commission's investigation revealed that a record company's size influences its ability to bargain with digital services such as Apple, Amazon and Spotify. The Commission was concerned that "if Universal were able to significantly increase its size after the merger" digital services would face "significantly increased licensing costs" while consumer choice and cultural diversity could be harmed. Thus, the Commission took steps to reduce Universal's market share accordingly.
Q: What other steps did the Commission take to help digital competiveness?
Universal has agreed not to enter into most-favored nation agreements with digital services in the European Economic Area (the European Union plus Iceland, Liechtenstein and Norway). A most-favored nation is a contract provision that gives a seller (the record company in this case) the best terms the buyer (a digital service in this case) gives to other companies (other record companies in this case). This commitment covers new deals as well as re-negotiations and renewals. The Commission believes ending Universal's inclusion of this contract provision will help lower licensing costs.
Q: Did the FTC seek any concessions to allow the merger?
No. The FTC sought no concessions in addition to those required for regulatory approval in the EU. The FTC believed the higher market share Universal and EMI have in the EU relative to the US, and the more diverse set of customers in the EU, means the remedies to address market share concerns in the EU will also reduce concentration in the U.S. market.
Q: Did the Commission take piracy into account?
Yes and no. While the Commission recognized that piracy does exist and has an impact on sales, it did not see the merger as a rational reaction to piracy. However, the Commission had piracy on its mind when limiting Universal's market share. The Commission concluded Universal could have used a larger market share to push prices higher or "worsen licensing terms" for digital services - thus leading to more piracy.
The list of local EMI entities (and one Universal label) to be sold:
- EMI France (featuring the David Guetta catalogue, Milow and Colonel Reyel);
- EMI Spain (featuring Macaco, Bebe, Luz Casal, Pablo Alboran and Heroes del Silencio);
- EMI Portugal (featuring Madredreus, Mariza and renowned Fado artists such as Carmane and Caminho);
- EMI Belgium (featuring Clouseau, Ozark Henry, Buscemi and Novastar);
- EMI Denmark (featuring Kim Larsen, Christophe, Bjornskov and Turboweekend);
- EMI Sweden (featuring Lasse Stefanz, Magnus Uggla and Eric Amarillo);
- EMI Norway (featuring Madrugada and Silvert Høyem, Lene Marlin and Morten Abel);
- EMI Poland (featuring Gregorz Ciechowski, Republika, Bajm, Namaam and Budka Suflera);
- EMI Czech Republic (featuring Tri sestri, Orlik, Kabat and Lucie Bila);
- Universal Greece (featuring Eleftheria Arvanitaki, the Goin' Through Group and Nikos Vertis).
Read more at http://www.billboard.biz/bbbiz/indus...0AWROHXCvDb.99
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Member Since: 5/18/2012
Posts: 20,576
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This means less labels. Soon there will be only 2 labels left.
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Member Since: 7/18/2010
Posts: 29,717
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Will the labels just be moved to UMG. Or artists to other UMG labels? What's happening?
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