{"id":52775,"date":"2018-11-14T19:24:23","date_gmt":"2018-11-14T19:24:23","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=52775"},"modified":"2018-11-14T20:03:06","modified_gmt":"2018-11-14T20:03:06","slug":"sony-completes-2-3bn-acquisition-of-emi-music-publishing","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/sony-completes-2-3bn-acquisition-of-emi-music-publishing\/","title":{"rendered":"Sony completes $2.3bn deal to acquire EMI Music Publishing"},"content":{"rendered":"<p>Sony has completed its <a href=\"https:\/\/www.musicbusinessworldwide.com\/sony-buys-60-stake-in-emi-music-publishing-for-2-3bn\/\">$2.3bn acquisition<\/a> of EMI Music Publishing according to an <a target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/313838\/000115752318002428\/a51899979.htm\">SEC filing<\/a> posted today (November 14).<\/p>\n<p>Sony Corp\u2019s takeover of EMI Music Publishing was <a href=\"https:\/\/www.musicbusinessworldwide.com\/sony-takeover-of-emi-music-publishing-gets-green-light-in-europe\/\">given the green light<\/a> by European regulators without any alteration on October 26.<\/p>\n<p>The closing of the $2.3bn deal means that Sony is acquiring the final 60% of EMI,\u00a0which becomes a wholly-owned subsidiary of Sony.<\/p>\n<p>Other companies wholly owned by Sony Corp include <strong>Sony\/ATV Music Publishing<\/strong>\u00a0\u2013 into which EMI Music Publishing is now expected to merge \u2013 plus\u00a0<strong>Sony Music Entertainment<\/strong>.<\/p>\n<p>Sony already owns 30% in EMI Music Publishing and is buying the final 10% from<a href=\"https:\/\/www.musicbusinessworldwide.com\/sony-corp-snaps-up-remaining-10-stake-in-emi-music-publishing-from-jackson-estate\/\" target=\"_blank\" rel=\"noopener\">\u00a0the Jackson Estate for $287.5m.<\/a><\/p>\n<p>The remaining 60% equity interest in EMP has been acquired from investor consortium led by Mubadala Investment Company for the equity purchase price of $2.3bn, based on an enterprise value of $4.75bn.<\/p>\n<p>According to the SEC filing, Sony has also assumed EMI\u2019s existing interest-bearing debt of approximately $1.3bn as a result of the acquisition, of which $960m was repaid immediately from Sony\u2019s existing cash.<\/p>\n<p>&#8220;As a result of this acquisition, Sony expects to record additional operating income of approximately \u00a5105 billion (approximately $925m), representing a non-cash step-up gain for the approximately 40% equity interest in EMI that Sony already owned and reflecting costs relating to the acquisition, in the Music segment in the third quarter of the fiscal year ending March 31, 2019,&#8221; said a statement in today&#8217;s filing.<\/p>\n<p>In May 2018,\u00a0Independent music trade body IMPALA<a href=\"https:\/\/www.musicbusinessworldwide.com\/impala-raises-concerns-over-sony-and-emi-deal\/\"> raised concerns<\/a> over the \u201cexcessive bargaining power\u201d Sony will have should its buyout of EMI Music Publishing go through.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EMI now becomes a wholly-owned subsidiary of Sony<\/p>\n","protected":false},"author":15,"featured_media":4292,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[370,412],"class_list":["post-52775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-emi","tag-sony"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/52775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=52775"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/52775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/4292"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=52775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=52775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=52775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}