After years of mounting debts and financial uncertainty, in September of this year, EMI; the British born and raised multinational, was acquired by Universal Music Group (UMG) following a fierce bidding war which saw the princely sum of £1.2bn being paid to EMI's owners for its assets including the infamous Abbey Road recording studios.
In an acquisition which clearly sets Universal Music Group as the largest multinational record label, for the short period of time it has spent with EMI's assets there has been much public speculation into what would actually happen to the assets acquired. Whilst splitting a company into smaller sub-components is almost always the most profitable means of making quick money, it was hoped by many that this would not happen. However, this is the very thing that has started to happen as EC regulators have ordered that UMG must sell off some of EMI's components including Sanctuary, EMI Classics and Parlophone (with exception of the Beatles catalogue).
Now almost a week ago, the 21st of December marks the first ending milestone for EMI and UMG where the 'Mute' legacy music catalogue, which includes music from the likes of Goldfrapp, Erasure, Moby, Depeche Mode and Nick Cave, was sold to Sony BMG Music Entertainment for an undisclosed figure.
Before the sale of EMI to Universal it was tipped that if the acquirer was to split and sell off EMI's catalogues that Richard Branson would attempt to buy back his founding business - Virgin Records, the famous £1bn buyout which financially broke EMI. However, this is not to be the case as later on the same day Song BMG announced that they had also bought the a portion of the Virgin catalogue.
It is likely now that we are to see a mass sale of music catalogues which may make Universal a substantial sum of money. With this being said it is sad that we are to see the a British born legacy dissolve.
After years of mounting debts and financial uncertainty, in September of this year, EMI; the British born and raised multinational, was acquired by Universal Music Group (UMG) following a fierce bidding war which saw the princely sum of £1.2bn...