Sony Gets OK on EMI Music Publishing Buy (SNE, C, BX)
A consortium led by Sony Corp. (NYSE: SNE) has received US Federal Trade Commission approval to acquire the music publishing arm of EMI from Citigroup Inc. (NYSE: C). Citigroup acquired the business following the default on borrowings by private equity…
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Sony and its partners — the sovereign wealth fund of Abu Dhabi, Jynwel Capital of Hong Kong, a subsidiary of The Blackstone Group LP (NYSE: BX), and David Geffen — are expected to close the deal later today. The group will own publishing rights to 1.3 million songs, including “Over the Rainbow” and “New York, New York” among many more recent songs by Amy Whitehouse, Alicia Keys, Kanye West, and Adele. The group now becomes the world’s largest music publishing house, ahead of Universal Music and Warner Music.
Universal Music’s acquisition of EMI’s recorded music is still under scrutiny by US and European regulators. If that deal goes through, Universal will own albums by the Beatles, the Beach Boys, and hundreds of other performers.
Sony’s shares are trading up 3.7% at $14.23 today, in a 52-week range of $12.63-$27.32.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.