Reports: EU To Approve UMG/EMI Deal On Friday
September 19, 2012 at 1:53 PM (PT)
Multiple sources are now reporting that the EUROPEAN UNION will approve UNIVERSAL MUSIC GROUP's $1.9 billion acquisition of EMI MUSIC this FRIDAY. If this pans out, the only obstacle left to complete the deal is approval by U.S. regulators.
According to the WALL STREET JOURNAL, UMG will have to sell off many of EMI's heritage record labels and the accompanying global rights. Among them include the PARLOPHONE, the home of COLDPLAY, QUEEN and GORILLAZ. Also apart of the deal is the UMG divesting itself of 60% of EMI's businesses in EUROPE, measured by revenue. It sell EMI units in over a half a dozen European countries, including FRANCE, SPAIN, SWEDEN and POLAND. Smaller EMI brands such as ENSIGN and MUTE, VIRGIN CLASSICS and CHRYSALIS, along with EMI's share of the Now music compilations labels.
The merger has been cleared in several other countries, including JAPAN and CANADA.The deal is still under review in AMERICA by the FEDERAL TRADE COMMISSION.
"The die has been cast and the decision has been made, though it has come at a very heavy price for UNIVERSAL," a source told the WSJ. "The next question is whether they will recoup the losses on its disposals and whether they will go to a single buyer."