In a $765 million deal, the Warner Music Group has reached
an agreement to purchase the Parlophone Label Group. Warner is the smallest of
the three major record companies, and with this deal it adds significant assets
to the brand. The deal includes EMI’s Parlophone, Chrysalis, and Ensign labels.
Warner will also gain control of many of EMI’s recorded
music operations abroad, including those in Belguim, the Czech Republic,
Denmark, France, Norway, Portugal, Spain, Slovakia, and Sweden. Artists and
recordings will include Coldplay, Daft Punk, Danger Mouse, David Guetta, Duran
Duran, Edith Piaf, Gorillaz, Iron Maiden, Jethro Tull, Kate Bush, Pink Floyd,
Radiohead, Tina Turner, and many more.
Universal
Music Group, who made a $1.9 billion deal for EMI last year, will keep
EMI’s Capitol and Virgin labels (which includes the Beatles, the Beach Boys,
Katy Perry, and Lady Antebellum). Overally, Warner is likely happy with the
deal since it significantly strengthens their international reach. And since
Warner offered a much higher bid than any other potential purchasers—including
Sony Music/BMG Rights Management, Simon Fuller/Chris Blackwell, and MacAndrews
& Forbes—the deal will be good for Universal, too.
The deal must still be approved by the European Commission
before it is set in stone, but it’s expected to hold up just fine against any
scrutiny, especially since it helps lessen the hold of Universal and Sony in
the music industry. Finalization
of the transaction should occur sometime this summer.
“This is a very important milestone for Warner Music,
reflecting our commitment to artist development by strengthening our worldwide roster,
global footprint and executive talent,” said Len Blavatnic of the deal.
Blavatnik is the founder of Warner’s parent company, Access Industries.
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