Sony Completes Acquisition of EMI Music Publishing

Posted Jun 30, 2012

An investor group that was led by Sony has closed a $2.2 billion acquisition of EMI Music Publishing yesterday. EMI Music Publishing deals with songwriting rights. This deal will give Sony control of over 2 million songs and a global market share of 31%, which is 9 points above Universal Music Group.
 Sony’s new catalog will include 750,000 tracks with 251 of those by the Beatles, which are controlled by Sony/ATV, the company’s joint venture with Michael Jackson’s estate. It will also include 1.3 million from EMI, which include Motown Hits, several Christmas songs, and recent songs by artists like Norah Jones, Kanye West, and Amy Winehouse.

Sony/ATV chairman Martin N. Bandier ran the EMI publishing catalog, which he built over 17 years until leaving Sony in 2007. Sony/ATV and EMI will remain separate entities, but Bandier made it clear in an interview that intended to run them as one collection of songs.

Sony will administer the EMI catalog through Sony/ATV. The Sony and Jackson estate will have a 38% stake. Other investors are Mubadala of Abu Dhabi, Jynwel Capital of Hong Kong, GSO Capital Partners, and David Geffen.

This deal was one of two that was reached by Citigroup in November. Citigroup took possession of EMI in 2011 after the private equity company Terra Firma default on their debt.

?At end of the day we are going to be one homogeneous company with one person ? myself ? running it,? stated Bandier.