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Universal Closes on EMI Deal, Becoming, by Far, Biggest of Remaining Big Three - The New York Times

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id="a-col"> <div id="content" class="hfeed"> <article class="post-107922 post type-post status-publish hentry category-music tag-citigroup-inc tag-emi-group-plc-2 tag-europe tag-grainge-lucian tag-mergers-acquisitions-and-divestitures tag-music tag-regulation-and-deregulation-of-industry tag-united-states tag-universal-music-group per-grainge-lucian des-mergers-acquisitions-and-divestitures des-music des-regulation-and-deregulation-of-industry org-citigroup-inc org-emi-group-plc org-universal-music-group geo-europe geo-united-states" id="post-107922"> <header class="postHeader"> <div class="postKicker"> <span class="kicker"><a href="https://archive.nytimes.com/mediadecoder.blogs.nytimes.com/category/music/?module=BlogCategory&amp;version=Blog%20Post&amp;action=Click&amp;contentCollection=Business&amp;pgtype=Blogs&amp;region=Header">Music</a></span> </div> <h1 itemprop="headline" class="entry-title">Universal Closes on EMI Deal, Becoming, by Far, Biggest of Remaining Big Three</h1> <div class="story-meta-footer"> <address class="byline author vcard" itemprop="author creator" itemtype="//schema.org/Person"> By Ben Sisario </address> <!-- date published --><time class="dateline " datetime="2012-09-28T17:32:21+00:00" itemprop="datePublished">September 28, 2012 1:32 pm</time> <!-- date updated --><span class="visually-hidden updated">September 28, 2012 1:32 pm</span> </div> </header> <div class="entry-content"> <p class="story-body-text" itemprop="articleBody">The Universal Music Group closed on its $1.9 billion acquisition of EMI Music on Friday, a week after receiving <a href="https://www.nytimes.com/2012/09/22/business/global/universal-takeover-of-emi-music-is-approved.html?pagewanted=all">regulatory clearance</a> in Europe and the United States and more than 10 months after it first made the deal with Citigroup.</p> <p class="story-body-text" itemprop="articleBody">As a condition of approval, Universal will be forced to sell off about a third of EMI&#x2019;s assets to other music companies. Even so, it will be the largest, by far, of the three remaining major record companies, with a global market share of about 36 percent.</p> <p class="story-body-text" itemprop="articleBody">Universal has now paid the balance of the purchase price to Citigroup, after paying roughly 90 percent of it earlier this month, Citi and Universal&#x2019;s parent company, Vivendi, announced on Friday. In its arrangement with Citi, <a href="https://www.nytimes.com/2011/11/12/business/media/emi-is-sold-for-4-1-billion-consolidating-the-music-industry.html">struck last November</a>, Universal assumed the full regulatory risk for the deal, agreeing to pay the full $1.9 billion regardless of the decisions by the Federal Trade Commission, the European Commission and other government agencies around the world.</p> <p class="story-body-text" itemprop="articleBody">&#x201C;This is a next step towards ensuring the health of our industry,&#x201D; Lucian Grainge, the chairman of Universal, said in a statement. &#x201C;EMI is finally returning to people who have music in their blood. We are acquiring incredible labels and a roster of stellar talent, including top-selling artists like Katy Perry, Lady Antebellum, the Beatles and the Beach Boys. We remain true to our vision of investing in EMI, growing the company as a vibrant source of new music, offering consumers more choice and supporting the growth of online music services.&#x201D;</p> <p class="story-body-text" itemprop="articleBody">Just 15 years ago there were six major labels, but their ranks have consolidated through successive mergers.</p> <p class="story-body-text" itemprop="articleBody">According to the European Commission&#x2019;s conditions for approving the deal, Universal must sell off EMI&#x2019;s prestigious Parlophone label along with a long list of other labels and assets, which means that the worldwide rights to release music by superstars like Coldplay, Pink Floyd and Kylie Minogue will be up for grabs.</p> <p class="story-body-text" itemprop="articleBody">Those assets might be worth well over $500 million, and according to the European regulators&#x2019; conditions, the majority of them must be sold to a single music company, to shore up competition.</p> <p class="story-body-text" itemprop="articleBody">The sales have not begun, but among the likely bidders are the Warner Music Group, Sony Music Entertainment and BMG Rights Management, which is backed by Bertelsmann and Kohlberg Kravis Roberts.</p> <footer class="story-footer"> <div class="story-meta"> </div> </footer> </div> <footer class="entry-footer"> <div id="sharetools-post-footer" class="sharetools theme-classic" data-shares="show-all|Share" data-url="//mediadecoder.blogs.nytimes.com/2012/09/28/universal-closes-on-emi-deal-becoming-by-far-biggest-of-remaining-big-three/" data-title="Universal Closes on EMI Deal, Becoming, by Far, Biggest of Remaining Big Three" data-description="The sale, which was first struck last November, was completed on Friday. Even after Universal sells off a third of EMI&apos;s assets, as required by regulators, it will have a market share of 36 percent."> </div> <div class="footer-tags"> </div> </footer> </article> <section id="whats-next" class="whats-next nocontent robots-nocontent"> <h2 class="visually-hidden">What&apos;s Next</h2> <div class="nocontent robots-nocontent"> <div class="loader-container"> <div class="loader loader-t-logo-32x32-ecedeb-ffffff"><span class="visually-hidden">Loading...</span></div> </div> </div> <!-- close nocontent --> </section> </div> <!-- end content --> </div> <!-- end .a-column --> <div class="cColumn nocontent robots-nocontent"> <aside> <div class="postNavigation"> <ul class="opposingFloatControl wrap"> <li class="element1"> <span class="previous">Previous Post</span> <div class="arrow arrow-left"> <div class="arrow-conceal"></div> </div> <a class="postTitle" href="https://archive.nytimes.com/mediadecoder.blogs.nytimes.com/2012/09/28/on-a-night-crowded-with-hits-big-bang-and-greys-anatomy-stand-out/" title="On a Night Crowded With Hits, &apos;Big Bang&apos; 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