Beatles: Universal-EMI Deal Still Has Gray Areas
The $1.9 billion deal to sell EMI to Universal Music Group is apparently done. The decade-old plan to merge EMI with Warner Music is over, kaput, forever. EMI’s biggest group, The Beatles, now goes to Universal Music Group. Or does it? The Beatles’ Apple Corps has unique arrangements with EMI, very different than most artists. A Beatle insider talked to me about this a few weeks ago. Apple Records and EMI are partners in their deal for Beatles albums. It’s not like the Beatles are simply part of the EMI inventory. So it will be interesting to see how Apple, which has been notoriously aggressive since the day it was conceived in 1968, will just play along. For example, Apple exacted a $500 million settlement out of Steve Jobs for infringement of the Apple trademark. As well, in order to bring the Beatles to Apple’s ITunes one year ago, it’s understood that ITunes pays the Beatles directly, and then the Beatles’s Apple pays EMI. If you don’t think this adds up to a lot of money, let me tell you: the Beatles stereo box set is still a top seller at $179. With a paucity of music created by rappers, hip hoppers, and pop samplers from 1985 on, older catalogs are worth more and more. The Beatles’ is worth the most. So we’ll wait and see if Apple (Records, that is) is happy with the EMI deal in the long run. “They could just as easily buy out their portion and move on,” said my source. True enough. At this point, the Beatles could be their own label without any trouble. And they do plan more releases in the next few years under their innovative leader, Jeff Jones.
Brandpn
Sony Corp. and the Michael Jackson estate = Sony ATV they are one, they have 38 % of the EMI publishing the other 62 % belongs to the other investor – These percentages are not taking about over all ownership of Sony ATV just the EMI Publising which we can assume will be added to the ATV Catalog. Not sure how that part works or if it will be kept seperate
http://www.sony.com/upload/assets/homepage_assets/EMI_Joint_Release_FINAL.pdf
Sony/ATV now owns 38% of EMI publishing, while others own a combined 62% of EMI publishing. In other words, SON/ATV has just invested $836m (38% * $2.2 Billions) in the purchase of EMI publishing.
As part of the deal Sony/ATV will also be administering EMI publishing that’s because Sony/ATV is by default a music publisher unlike other investors such as Mubadala Development Company PJSC; Jynwel Capital Limited; the Blackstone Group’s GSO Capital Partners LP; and David Geffen that were part of the consortium that bought EMI publishing.
It’s a massive win for Sony/ATV. They now have a 38% stake in EMI publishing, which means more money coming into Sony/ATV. Plus, they get to administer the whole EMI cat, which also means more money coming into Sony/ATV as they get paid for administering songs catalog. EMI is huge and contains 1.3m songs.
Maybe, over time, Sony/ATV will buy out other investors thereby taking full ownership of the EMI cat. This will probably happen by the year 2020 or so. Sony/ATV will first have to payback the debt ($836m) they incur in the purchase of EMI.
That could take sometimes but once that’s done, they will slowly buy out other stakeholders.
Sony/ATV will get paid 38 % of EMi publishing profits and also be paid for managing the EMI Catalog.
Michael Jackson´s three kids will aquire/inherit MJ’s 50% ownership of Sony/ATV