Report: UMG Looking To Unload $350 Million In Assets To Win EU Approval To Buy EMI Music
September 11, 2012 at 3:52 AM (PT)
YESTERDAY (NET NEWS 9/10), ALL ACCESS reported as The EU inches closer to approving the $1.9 Billion purchase of EMI MUSIC by UNIVERSAL MUSIC GROUP, more details continue to leak out regarding the concessions UMG is being asked to make in order to get a thumbs up on the deal. Now, THE NEW YORK POST has discovered UMG is "eager to unload upwards of $350 million in assets to win antitrust approval."
VIVENDI has confirmed that the company made its scheduled $1.6 billion payment to CITIBANK late last week. The asset spinoff would be used to help cover the remainder of the purchase.
There is a SEPTEMBER 27th deadline for a ruling, yet most insiders expect the EU to make it's decision sooner.
THE POST notes, "UNIVERSAL boss LUCIAN GRAINGE might be facing the music if he has to absorb painful losses from the regulatory enforced sale of such assets as PARLOPHONE RECORDS," and adds, "Expected to be put on the block are global rights to PARLOPHONE -— which houses COLDPLAY and Australian pop star KYLIE MINOGUE, among others -— and CHRYSALIS, as well as EUROPE-only rights to MUTE, ENSIGN EMI CLASSICS and VIRGIN CLASSICS."
It's thought that EU commissioners are working to keep UMG's market share below 40% with the addition of EMI MUSIC.
"UMG has hired GOLDMAN SACHS and BANK OF AMERICA as advisers," sources told THE POST. "Investment bank ALLEN & CO. is no longer in the mix."
A spokesman for UNIVERSAL told the paper, "There is growing recognition that UNIVERSAL MUSIC's investment in EMI will create more opportunities for new and established artists, expand music output and support new digital services. We’re working closely with regulators and remain confident of securing approval."