Sony group closes on $2.2B EMI publishing purchase

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Offline mindseye

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Sony group closes on $2.2B EMI publishing purchase - Yahoo! News

LOS ANGELES (AP) — A group led by Sony Corp. said Friday it has purchased Britain's EMI Music Publishing for $2.2 billion from Citigroup, creating the world's largest music copyrights company with a catalog that includes hits from Motown, The Beatles, Jay-Z and Norah Jones.

Now all that remains of the storied British label group is its recorded music division, which Vivendi's Universal Music Group has offered to buy for $1.9 billion. That deal is being looked at by European and U.S. regulators. If they approve some time later this year, the world's major music companies will be reduced from four to three.

Recorded music companies have argued that they need to combine resources to survive in an industry crippled by piracy, as the legitimate digital distribution of music is still in its infancy around the globe.

But publishing has remained a steady business over the years, despite the onslaught of the Internet and the ongoing decline of compact disc sales, because of its diverse revenue sources. And by acquiring EMI, Sony/ATV, a 50-50 joint venture between Sony and the Michael Jackson estate, will control just over 2 million copyrighted songs. The new entity is estimated to capture nearly a third of publishing revenue in the world.

Size wouldn't necessarily give the company the ability to use its dominance to boost licensing revenue, Sony/ATV argued, because licensing rates are closely controlled by laws in various countries.

Friday's clearance by the U.S. Federal Trade Commission means that regulators agreed the new entity would not have the market power to raise rates on its own or coordinate such a move with others, which could have affected the price of songs. The FTC's conclusion of its investigation without objections was the final hurdle before the deal's closing was announced later in the day.

"We've gone over the rainbow and hit the pot of gold," said Sony/ATV CEO Marty Bandier, adapting a lyric from "The Wizard of Oz" song "Over the Rainbow," which is part of the EMI catalog. Bandier ran EMI's publishing division for 17 years.

Last year, publishing companies generated about $3.9 billion in revenue, relatively unchanged over the last several years, according to Simon Dyson, editor of Music & Copyright, an industry newsletter.

Publishing's revenues have held up better than the recording side because there are more streams of revenue that aren't tied to declining sales of compact discs. Publishers and songwriters share a cut of about 8 to 9 cents for every 99-cent download purchased from online retailers like Apple Inc.'s iTunes. But they also make money from radio airplay, free online streaming and the placement of songs in movies, TV shows and commercials.

Sony/ATV's 11.7 percent share and EMI's 19.3 percent share means the combined entity will now control about 31 percent of the global market for music copyrights, leapfrogging past the 22.2 percent share of Universal Music Publishing Group, Dyson said. The next largest is Warner Music Group Corp.'s Warner Chappell with 14.1 percent. All independent music publishers combined have a 32.6 percent share.

Dyson said Sony/ATV will have increased leverage in setting licensing rates for new digital music startups if it chooses to bypass royalty collection societies like The American Society of Composers, Authors and Publishers in the U.S. But he acknowledged that would require a major shift in how most business is conducted.

"If you're a big publisher with a 10 percent lead, you're going to have a big say in what licensing rates are," Dyson said.

Fostering fair competition in the digital landscape was one of the concerns of regulators, according to Sony/ATV's Bandier. The company argued that even if there were still four major music publishers, new digital entrants like streaming music services Spotify or Songza would need to go to all of them to start up any business that has a chance to survive. It would need EMI's songs by Kanye West and Rihanna as much as it would need Sony/ATV's Beatles, Lady Gaga and Taylor Swift, Bandier said.

"It didn't make a difference if you'd put them together or separate, you'd still have to make a deal if you were a digital service that was just starting," Bandier said in an interview. "We had to convince all of the regulators that that was the case. We're happy we're past that. We never felt it would be an issue."

The transaction was cleared by EU regulators in April. That came after Sony/ATV offered the concession that it would sell the publishing rights to several catalogs as well as the works of 12 artists including Ozzy Osbourne, Robbie Williams, and Ben Harper.

Besides Sony, the buyers of EMI Music Publishing include the Michael Jackson estate and several investment funds including United Arab Emirates government-backed fund Mubadala Development Co.

Citigroup seized EMI from private equity firm Terra Firma in February 2011 after Terra Firma defaulted on $5.5 billion in debt stemming from its 2007 purchase of the music company.
'Money...Lie for it Spy for it Kill for it Die for it They'd kill for the money Do or dare'

Offline sweetsunsetwithMJ

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  • Michael I am looking forward to your BAM!!
Thank you mindeye for sharing this news, I am overhoaxed or this paragraph is full of clues  :woohoo2: this hoax is getting better and better!
I WANNA BE WHERE YOU ARE!!

Offline everlastinglove_MJ

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Quote
"We've gone over the rainbow and hit the pot of gold," said Sony/ATV CEO Marty Bandier, adapting a lyric from "The Wizard of Oz" song "Over the Rainbow," which is part of the EMI catalog. Bandier ran EMI's publishing division for 17 years."

Quite odd of Sony to refer to "The Wizard of Oz" because it is linked to Michael Jackson. Though, probably "Over the Rainbow" is linked to Connie Talbot's album which seems to have ben a big success for Sony, especially for the "Rainbow Recording Company". http://en.wikipedia.org/wiki/Connie_Talbot

Good night/day everyone :) & L.O.V.E.
It's all for L.O.V.E.

Offline onthewingsoflove

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Sweet!
"Defender of the faith, Supporter of the Word!"

Offline ShareThatBeatOf L.O.V.E

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 :woohoo2: Hi Mindseye, WoW !! Thanks for this - I love it that  The Wizard Of OZ  was mentioned  :michael-jackson:

Offline marumjj

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Again mention "rainbow" and seems trend these days, and very rare, everything leads us to MJ.  :woohoo2:


                 

Offline voiceforthesilent

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Thank you for sharing this with us. I was excited about this venture because I thought Michael's music was going to go back to him (in a 'round about way) - if that happened then wonderful.


I continue to think of BACK and his comment. It's a TAKEOVER. Go Michael!

Blessings
I'm proud to be a child of God and a member of MJ's Army of L.O.V.E.
 
"Press coverage of my life is like [watching] a fictitious movie...like watching science fiction. It's not true." ~Michael Jackson (2005)

"You should not believe everything you read. You are missing the most important revelations". Craig Harvey 3-15-2012

Offline darkchild

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God bless for sharing this insightful info. It is so helpful to see MJ's plan in motion.

God bless all! :)


You rocked my world, you know you did
And everything I own I give
The rarest love who\'d think I\'d find
Someone like you to call mine




"Let us dream of tomorrow where we can truly love from the soul, and know love as the ultimate truth at the heart of all creation."
------Michael Jackson


Those who go beneath the surface do so at their peril. --Oscar Wilde

Offline Grace

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This is real old news and it makes one wonder why it is being warmed up now.

Purchase did take place in November 2011 (around the time TS vanished).
Sony/ATV Music Publ. will oversee the world’s second-biggest music catalogue

Purchase was authorized by European authorities in spring 2012 and only then 100% in dry tissues.
At the same time, Martin Bandier extended his contract.
Martin Bandier Signs Long-Term Contract to Remain Chairman & CEO, SONY/ATV Mus

Of course they hit the rainbow and gold pot with the deal.



The purchase of tIME (EMIt) does bring the catalogue of Motown back into black hands.
What more do we ask.
Michael GO!
Create your day. Create the most astounding year of your life. Be the change you want to see in the world! L.O.V.E.
***********************************************************************************************
"I am tired, I am really tired of manipulation." Michael Jackson, Harlem, New York, NY, July 6, 2002
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******* Let's tear the walls in the brains of this world down.*******

Time to BE.

Offline VeryLittleSusie

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Has Michael gone undercover to do such huge business?  ???
Please, click "I Like It" on my Facebook page if you like my drawings :) http://www.facebook.com/artbozenawojtas
 

Offline voiceforthesilent

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Has Michael gone undercover to do such huge business?  ???

Can you expound on your thoughts? Do you think it was Michael directly that orchestrated this deal or do you think he was just behind the curtain. I believe the latter for sure.

Blessings
I'm proud to be a child of God and a member of MJ's Army of L.O.V.E.
 
"Press coverage of my life is like [watching] a fictitious movie...like watching science fiction. It's not true." ~Michael Jackson (2005)

"You should not believe everything you read. You are missing the most important revelations". Craig Harvey 3-15-2012

 

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