×
You will be redirected back to your article in seconds

UMG completes EMI divestment process

With two sales agreements announced on Wednesday, Universal Music Group finally completed the long, European Commission-mandated divestment process following its acquisition of EMI’s recorded music assets. EMI’s European share of the venerable “Now That’s What I Call Music” series will be claimed by Sony Music Entertainment, while independent marketing entity Co-Op will be sold to PIAS Recordings.

According to a source, European rights to the “Now” series will fetch around £40 million ($60 million), while PIAS will pay less than $760,000 for Co-Op.

When the divestment package was first announced, the cumulative value of the assets was estimated at around $606 million; in total, UMG recouped $909 million from the sales, approaching half of the $1.9 billion it paid for EMI’s assets in the first place, with much of that money coming from the higher-than-expected sale of the Parlophone Label Group to Warner Music Group for $765 million.

Move finally completes the process begun in fall of 2011, when UMG announced it was purchasing EMI Recorded Music for $1.9 billion. After the label group agreed to divestments, the merger was formally approved last September.

Max Hole, CEO of UMG International, said in a statement: “This sale, along with our previous transactions, not only satisfies our agreement with the European Commission, but further demonstrates the value we have been able to unlock through the targeted divestment of quality assets.”

The “Now “ series, which first bowed in Europe 30 years ago, has generated worldwide sales of more than 200 million copies.

While UMG’s Wednesday sales wrap up one of the more protracted record label diasporas in recent memory, the asset-snatching will resume shortly, as WMG plans to auction off portions of its newly acquired Parlophone package in order to pass regulatory scrutiny.

More Biz

  • Carlyle Group, Investors in Taylor Swift

    Carlyle Group, Investors in Taylor Swift Catalog, Address Scooter Braun Drama (Sort Of)

    Kewsong Lee, co-CEO of The Carlyle Group, a private equity fund whose assets include a minority investment in Big Machine Label Group, the record company that’s home to Taylor Swift’s catalog, spoke to CNBC’s “Squawk Alley” on Wednesday. During the interview, held at the Goldman Sachs Financial Conference, host Wilfred Frost asked the business executive [...]

  • Mergers and Deals Placeholder

    Top 19 Media Trends of 2019: Mega Mergers

    Media consolidation has been rife in the past two years, as traditional media companies have scaled up in order to protect themselves against the new entrants challenging their business.  Traditional media has spent $229 billion since March 2018 on just six key mergers as rivals opted to combine their assets to compete in the new [...]

  • Conde Nast Deirdre Findlay Mike-Goss

    Condé Nast Names Former Google, Sotheby’s Execs to CMO and CFO Posts

    Condé Nast announced the appointments of Deirdre Findlay — previously a senior marketing exec at Google and Stitch Fix — as chief marketing officer, and Mike Goss, previously with auction house Sotheby’s, as chief financial officer. The hires are the latest reshuffling of Condé Nast’s senior leadership under CEO Roger Lynch, who joined the media [...]

  • Chris Cotton

    Comedian Chris Cotton Dies at 32

    Chris Cotton, a comedian best known for his online talk show “Every Damn Day,” died Thursday from unknown causes. He was 32. Comedy Central confirmed Cotton’s death in a tweet saying, “We’re devastated by the loss of Chris Cotton — a hilarious comedian, a beloved member of the Comedy Central family and a joy to [...]

  • Orlando Bloom

    Orlando Bloom Sets First-Look Deal With Amazon

    “Carnival Row” star Orlando Blook has inked a first-look deal with Amazon, Variety has learned. Under the deal, Bloom will develop television and film projects for Prime Video. Bloom currently stars on Amazon’s “Carnival Row” alongside Cara Delevigne. The series premiered back in August and was renewed for a second season ahead of the series premiere. The [...]

  • Grammy Awards 60th Annual Grammy Awards,

    Recording Academy Reveals Its Diversity Task Force Report, With Strong Calls for Reform

    Anyone wondering what the Recording Academy’s Task Force on Diversity and Inclusion has been doing for the past 18 months got their answer this morning in the form of the organization’s strongly worded, 47-page-long Final Report, which is now available on the Academy’s website. As its name states, the Task Force, helmed by former first [...]

More From Our Brands

Access exclusive content