UMG Sells European NOW! Rights, Co-Op Music
February 27, 2013 at 2:01 PM (PT)
Fulfilling one of the final conditions for its acquisition of EMI MUSIC, UNIVERSAL MUSIC GROUP (UMG) has just sold EMI MUSIC’s European rights in "NOW That's What I Call Music!" to SONY MUSIC ENTERTAINMENT, subject to regulatory approval. Financial details were not disclosed. At the same time, MUSIC WEEK reports that UMG has sold CO-OPERATIVE MUSIC, which works with BELLA UNION, MOSHI MOSHI, WICHITA and other indie labels, providing support in marketing, promotions, digital distribution and other services.
UMG retains its pre-existing rights to the highly successful NOW! compilation series in EUROPE and acquires EMI MUSIC’s rights outside of EUROPE.
"This sale, along with our previous transactions, not only satisfies our agreement with the European Commission, but further demonstrates the value we have been able to unlock through the targeted divestment of quality assets,'UMG INTERNATIONAL Chairman/CEO MAX HOLE said. "Moreover, we are pleased to partner with Sony, a company that recognizes the cultural importance of this long-standing British institution."
"NOW is one of the most famous and successful brands in music," SONY's EDGAR BERGER noted. "We are delighted to have acquired EMI’s interests in the NOW brand in EUROPE and will work with UNIVERSAL MUSIC and our other partners across the industry to build the next chapter in NOW's history."
MUSIC WEEK quoted UMG CEO JEAN-FRANCOIS DUBOS stating: "The disposal of EMI assets is a success, with 1/3 of EMI revenue sold for almost up the initial price of the acquisition."
Added CFO PHILLIPE GASTON, "UMG has successfully closed the EMI acquisition and sold the Brussels mandated remedies at excellent conditions ... The proceeds from EMI asset sales have reached about £530 million. That is close to 1/2 of the initial price tag we paid for the whole of EMI.