Title: Universal and Sony Buy EMI for $4.1 Billion: Record company splits in two
Article by: Dan Walker Smith
Adweek has reported that record company EMI has been bought in two deals with Sony and Vivendi’s Universal Music. According to Adweek,
“The company will now be split into two divisions. Universal bought EMI’s recorded music group for $1.9 billion on Friday, while a group headed by Sony picked up EMI’s music publishing division for $2.2 billion. The combined value of the deals was $4.1 billion. EMI was previously owned by Citigroup.”
The New York Times reports that the breakup of EMI “completes the biggest shift in music’s corporate structure in almost a decade.” Although the deal is subject to regulatory approval, if it goes through, the number of major record companies will be reduced to three. Sony and Universal will have a larger presence than they already have.
According to the New York Times Universal has plans to sell around$680 million worth of assets to combat competition concerns.