Two Unions Give Their Approval To UMG's Acquisition Of EMI Music
April 18, 2012 at 3:54 AM (PT)
UNIVERSAL MUSIC GROUP has gotten two thumbs up, as two NORTH AMERICAN artists' unions have given their "qualified approval" for UMG's proposed $1.9 billion acquisition of EMI's recorded music division. That approval was sent in letters sent last week to the FEDERAL TRADE COMMISSION.
CANADIANBUSINESS.COM reports, "In their letters, SAG-AFTRA and the AMERICAN FEDERATION OF MUSICIANS said they would support the deal if there were adequate mechanisms to ensure that UNIVERSAL complies with its commitment to re-invest in artist development."
"It has been wrenching to watch EMI wither" as its former private equity owner TERRA FIRMA cut costs, wrote SAG-AFTRA Co-National Exec. Dir. KIM ROBERTS HEDGPETH, urging regulators to examine UNIVERSAL's commitments to artist development. ""Should the commission be satisfied that there are adequate mechanisms to ensure compliance with those commitments, we respectfully request that it look favourably on UNIVERSAL MUSIC GROUP's stewardship over EMI."
UMG said in a statement it was "delighted" that the unions took a positive view of its plans.