×

WMG buys Parlophone Label

Former EMI assets acquired by label group for around $765 million

Warner Music Group has won the divestment derby and acquired the Parlophone Label Group for approximately $765 million from Universal Music Group.

UMG had auctioned the Parlophone holdings to get regulatory approval for its $1.9 billion acquisition of EMI Music’s labels, closed last fall. UMG has since established its Capitol Music Group as a stand-alone repository for those assets.

In the all-cash deal concluded Thursday, WMG will now control the Parlophone, Chrysalis and Ensign labels, plus EMI’s recorded music operations in Belgium, the Czech Republic, Denmark, France, Norway, Portugal, Spain, Slovakia and Sweden.

Parlophone’s roster and catalog include Coldplay, Gorillaz, Radiohead, Pink Floyd, Air, Daft Punk, Danger Mouse, David Guetta, Duran Duran, Iron Maiden, Kate Bush, Pet Shop Boys and Tina Turner. The company’s best-known act, the Beatles, moved to UMG with the EMI purchase.

Addition of Parlophone’s holdings will supply some market-share lift to WMG, now a distant third among the three major label units. Last year, Warner accounted for 19.1% of the total domestic album market, according to Nielsen SoundScan.

In sealing the deal, WMG prevailed in a bidding field that had reportedly included Sony, BMG, Simon Fuller and Chris Blackwell.

In late 2011, Warner – which had itself just been purchased by Russia-born industrialist Len Blavatnik’s Access Industries — abruptly stepped away from the bidding on the totality of EMI’s assets, after years of uncompleted or frustrated attempts to splice the two giant music firms.

Blavatnik said Thursday that the Parlophone purchase was “a very important milestone for Warner Music, reflecting our commitment to artist development by strengthening our worldwide roster, global footprint and executive talent.”

WMG CEO Stephen Cooper said in a statement, “Having the Parlophone Label Group become part of our family represents a unique opportunity for us to join with legendary record labels and artists that are highly complementary to our existing organization from a creative, geographic and strategic standpoint. We are committed to making this a great outcome for Parlophone’s artists and employees, who will find in WMG a similar spirit and culture that is dedicated to providing the most supportive and innovative home for recording artists. The continuation of the Parlophone legacy and brand are central to the future success of this combination.”

On the seller’s side, UMG chairman-CEO Lucian Grainge said, “Following this transaction, we will continue with our global reinvestment program that is rebuilding EMI and ensuring that the company is able to reach its full potential. And we’re satisfied that our agreement with Warner Music will provide a home for PLG artists.”

WMG said it was financing the Parlophone buy through a new term loan facility provided by Credit Suisse, Barclays, UBS Macquarie and Nomura, with the deal expected to close in mid-2013 following regulatory scrutiny.

More Music

  • Leaving Neverland HBO

    HBO Seeks Dismissal of Michael Jackson Estate's Suit Over 'Leaving Neverland'

    HBO urged an appeals court on Friday to throw out litigation brought by the Michael Jackson estate over the 2019 documentary “Leaving Neverland.” HBO and the Jackson estate have been locked in a legal war ever since the premium cable network agreed to run the documentary, which chronicles child sexual abuse allegations against Jackson. The [...]

  • the jesus rolls

    Émilie Simon Contributes Flamenco/Gypsy Vibe to John Turturro's ‘The Jesus Rolls’

    For French musician Émilie Simon, the flamenco-meets-gypsy vibe writer-director John Turturro was seeking for the soundtrack to his movie “The Jesus Rolls” turned out to be in her musical and genetical DNA. “This music originally comes from where I grew up in the south of France,” says the 41-year-old electronic musician, who has released five [...]

  • Normani Camila Cabello

    Normani Responds to Camila Cabello's Old Racist Posts: 'It Was Devastating'

    Normani has commented on her former Fifth Harmony bandmate Camila Cabello’s history of racist behavior on social media. Last year, Cabello came under fire when years-old posts featuring racist slurs and derogatory memes from the singer’s personal Tumblr resurfaced online. In a new Rolling Stone cover story, Normani first expressed trepidation toward addressing the issue [...]

  • Tierra Whack Talks Fashion, 'What Whack

    Tierra Whack Talks Fashion, 'What Whack Wears,' and Her Next Album

    Since the 2018 release of her debut album, “Whack World,” and its frenetic 15-songs-in-15-minutes aesthetic, rapper-producer Tierra Whack has drawn attention to her wily brand of fractured hip hop. Not only did she snag nearly 60 million audio streams in the U.S., according to Nielsen Music (as of 2019’s end), Whack won the attention of Jody Gerson and Universal [...]

  • Editorial use only. Hand Out HANDOUT

    Big Hit, Home to BTS, Eyes $5B Valuation in IPO Bid; Will Coronavirus Stall the Plan?

    South Korea’s Big Hit Entertainment, home to global K-pop sensations BTS, is moving toward an IPO and recently selected underwriters. Sources in the investment banking industry say JP Morgan, NH Investment & Securities, and Korea Investment & Securities were chosen as main managers early this week, while Mirae Asset Daewoo is also on board as a joint manager. [...]

More From Our Brands

Access exclusive content