Universal Music Set To Buy EMI...

So looking at the news this morning, it seems that a big financial move happened between Universal Music and EMI.  Apparently, the sealed deal to buy out EMI (Europe, Australia, USA and more places) is now taking further steps, as they have received approval from the European Union.  All $1.9 billion of it!

Now I am not 100% sure what this will mean to artists (if anything), but it does bring into play the amazing roster that EMI will be giving up (Coldplay, David Guetta, Kylie Minogue, Pink Floyd, The Beatles, The Beach Boys, Katy Perry and many, many more).  So from the articles I have gone through and educated myself as much as I can, here is what I found as an official statement from the European Commission:

"To remove the Commission’s concerns, Universal committed to divest significant assets.

These divestments include EMI Recording Limited, which holds the iconic Parlophone label (home to artists such as Coldplay, David Guetta, Lilly Allen, Tinie Tempah, Blur, Gorillaz, Kylie Minogue, Pink Floyd, Cliff Richard, David Bowie, Tina Turner and Duran Duran). The divestments also encompass EMI France (which holds the David Guetta catalogue), EMI’s classical music labels, Mute (home to The Ramones and Jethro Tull), Chrysalis (home to Depeche Mode, Moby and Nick Cave & The Bad Seeds), various other labels and a large number of local EMI entities. The divestment package also includes Coop, a label licensing business selling artists such as Mumford and Sons, Garbage and Two Door Cinema Club.

In addition, Universal committed to selling EMI’s 50% stake in the popular Now! That’s What I Call Music compilation JV and to continue licensing its repertoire for that compilation in the next ten years.

Universal finally committed not to include Most Favoured Nation ('MFN') clauses in its favour in any new or renegotiated contract with digital customers in the EEA for ten years. MFN clauses oblige digital customers to extend any favourable term granted to Universal’s competitors to Universal. This commitment will allow Universal’s competitors to negotiate more freely with digital customers and further levels the playing field between these competitors and Universal.

The rights to be divested are worldwide and cover both digital and physical music. This will ensure a viable and competitive exploitation of the divested artists and catalogue by the purchaser of the assets.

In light of these commitments, the Commission concluded that competition on the digital music markets in the EEA will be adequately preserved and that the transaction will have no negative impact on consumers”. -European Commission

Commission Vice-President in charge of competition policy Joaquín Almunia said, 'Competition in the music business is crucial to preserve choice, cultural diversity and innovation. In this investigation, we have paid close attention to digital innovation, which is changing the way that people listen to music. The very significant commitments proposed by Universal will ensure that competition in the music industry is preserved and that European consumers continue to enjoy all its benefits.'



And since were always going to have difference of opinions, here are some of the re-buttles from advocacy groups and analysts:

“It’s good to see that the commission has seen this deal as such a threat to the market that it has demanded and received truly swinging commitments on divestments.  However, that should not conceal that fact that Universal’s arrogance has paid off for them, that they have destroyed a significant competitor, and that even with these divestments their ability to dominate and control the market has reached even more unacceptable levels.” -Martin Mills (Chairman of the independent Beggars Group)

"the F.T.C. is allowing UMG to acquire unprecedented market power and amass a dominant collection of copyright holdings. UMG can now use those holdings not just to raise prices for consumers, but also to create a new tax on innovation among digital music services.” -Jodie Griffin (staff attorney at Public Knowledge)

“In many ways, Universal and EMI must be reasonably happy.  They would probably prefer to buy the whole thing, but still they are much better of than they were yesterday.” -Claudio Aspesi (media analyst at Sanford C. Bernstein & Company in London)

There are many sources to follow up on this move happening.  Here are but a few of the articles I sifted through:

- New York Times

- Reuters

- Noise 11