UMG Acquires Digital Marketing Agency Fame House From SFX
May 27, 2016 at 11:33 AM (PT)
UNIVERSAL MUSIC GROUP has acquired FAME HOUSE, a digital marketing agency whose clients include artists, brands and festivals including EMINEM, PEARL JAM and ELECTRIC ZOO, from SFX ENTERTAINMENT for a reported $1 million. SFX declared Chapter 11 bankruptcy in FEBRUARY (NET NEWS 2/2).
The deal was approved by the DELAWARE BANKRUPTCY COURT YESTERDAY (MAY 26th), with UMG COMMERCIAL SERVICES agreeing to take on about $400,000 in debts and liabilities in addition to the $1 million sales price.
The PHILADELPHIA-based company will continue to provide and expand on their services as an agency for UMG as well as third-party clients. Founder/CEO MIKE FIEBACH and Chief Strategy And Marketing Officer ERIC HAHN will continue to lead the agency and report to EVP/CFO BOYD MUIR and EVP MICHELE ANTHONY.
The acquisition of FAME HOUSE is expected to advance UMG’s strategy to create unique commercial opportunities for its artists and labels through social media, consumer engagement, direct-to-consumer and direct-to-fan initiatives, as well as activations for brands, sponsors and live events.
Said ANTHONY: “At UNIVERSAL MUSIC, we have created artist and label services that are unrivaled in our industry. FAME HOUSE will provide digital marketing services and social media expertise for our artists and labels to build fan engagement and reach new audiences through compelling direct-to-consumer and merchandising experiences, as well as create activation opportunities for brands and sponsors and for our live events.”
Added MUIR: “UMG’s acquisition of FAME HOUSE is further evidence of our evolution into a multifaceted entertainment company that can provide a broad range of services for artists beyond recorded music, publishing and merchandising. I’m looking forward to working with MIKE, ERIC and the entire FAME HOUSE team on unlocking new creative and commercial opportunities for our artists and labels.”
FIEBACH commented: "We are eager and excited to continue to build FAME HOUSE as a part of UMG. We believe that we can build a game-changing business with UMG. I am thankful to BOYD, MICHELE, MIKE TUNNICLIFFE, PETER SINCLAIR and the rest of the UMG management team for recognizing the potential of FAME HOUSE and for giving us this incredible opportunity. With the resources and support of the world’s leading music company, the sky is now the limit.”
Said HAHN: “As someone who has only wanted to build a career in the music industry, the opportunity to work in the UMG family is an absolute dream come true. We believe that the UMG leadership is at the forefront of innovating positive evolution in the industry and for them to recognize a company that we built as a key ingredient in their strategy is something we are very proud and appreciative to be a part of.”
Founded in JANUARY 2011 by FIEBACH, FAME HOUSE is a digital strategy agency with offices in PHILADELPHIA, NEW YORK and LOS ANGELES built to uniquely serve the needs of the modern music industry by connecting artists and fans online to help establish a new key role within the music ecosystem alongside labels, management companies, event companies and agents.