In case you missed it, Sony Corporation will pay about US$2.3 billion for an additional 60 percent stake in EMI Music Publishing, beefing up its share in the company to 90 percent.
Impala didn’t miss the news
The Brussels-based independents trade association opposes the mega-deal, which it says is bad for business and warns the regulatory authorities will want a closer look.
Speaking on the development, Helen Smith, Executive Chair of Impala, explained:
“The European Commission will want to avoid reinforcing the Sony/Universal duopoly, the two horse race which started in 2012 with the sale of EMI. This is a step too far and I would expect to see an in-depth investigation in the EU and other key jurisdictions.”
The deal values EMI Music Publishing at $4.75 billion, including debt. That’s well up from the company’s $2.2 billion value back in 2012 when Sony/ATV Music Publishing chairman Martin Bandier led the charge to buy the publishing giant, which he led for 17-years prior to taking the helm at Sony/ATV in April 2007.
Sony Corporation recently signed a “legally binding” memorandum of understanding with the Mubadala Investment Company.to acquire a 60 percent share in the publisher, pending regulatory go-ahead. The Michael Jackson estate controls the remaining 10%, which will possibly go up for sale in the weeks or months ahead.