Lucian Grainge Predicts Some Jobs Cuts With UMG/EMI Merger
September 24, 2012 at 3:42 AM (PT)
It became official on FRIDAY (NET NEWS 9/21) as UNIVERSAL MUSIC GROUP got both U.S. and EU regulatory approval to buy EMI MUSIC for $1.9 billion after agreeing to sell record labels that bring in nearly a third of the British company's revenues.
In his first interview since the approval, UMG Chairman/CEO LUCIAN GRAINGE told the British website THISISMONEY, "Is this deal worth it? You bet. This deal has now been cleared in the three biggest music markets in the world -- AMERICA, JAPAN and GERMANY. I am leading a business that now owns CAPITOL MUSIC and THE ABBEY ROAD STUDIO as well as the EMI and VIRGIN labels."
The website notes the deal will come at a price for some EMI staff.
"We intend to generate cost savings of £100 million," GRAINGE said. "There will be job losses. I can only grow this business by making savings and investing in the product -- the artists and the music."