EMI sold to Universal for £1.2bn

 

EMI's iconic recorded music business is set to be taken over by rival Universal after a £1.2 billion deal was agreed today.

The EMI division, home to Coldplay, Katy Perry, the Beatles and Pink Floyd, will become part of the world's biggest recording company, which is owned by France's Vivendi, and whose artists include Take That and the Rolling Stones.

EMI, which also owns the Abbey Road studios, was taken over by US bank Citigroup earlier this year after its private equity owner Terra Firma was unable to keep up with interest payments.

The sale of EMI's music publishing arm is due to be completed later, with a Sony-led consortium expected to land the business, which collects royalties from broadcasting of music on television and radio.

Lucian Grainge, chairman and chief executive of Universal, said: "This is an historic acquisition and an important step in preserving the legacy of EMI Music.

"For me, as an Englishman, EMI was the pre-eminent music company that I grew up with. Its artists and their music provided the soundtrack to my teenage years."

Universal has pledged to continue to promote EMI's various record labels, including Parlophone, Virgin Records and EMI Records, and retain the Abbey Road studios.

The deal is yet to be approved by regulators but it is understood that Universal hopes the deal will be waved through because music companies are under such immense pressure from internet downloads.

Terra Firma's takeover of EMI, which is also home to Kylie Minogue and Tinie Tempah, is widely seen as one of the worst-timed deals of the credit bubble, coming just before the crisis hit.

The deal left EMI, whose sales were already being squeezed, with crippling repayments on its £3 billion debts.

Citigroup, which financed the deal, took control of the company when Guy Hands' Terra Firma struggled to repay its debts.

Mr Hands tried unsuccessfully to sue Citi, claiming the bank had claimed other parties were interested to bump up the price.

PA

PROMOTED VIDEO
Sport
Robin van Persie leaves the field at the King Power Stadium last Sunday
football
Arts and Entertainment
Martin Freeman and Benedict Cumberbatch as John Watson and Sherlock Holmes in Sherlock
tv

Co-creator Mark Gatiss dropped some very intriguing hints ahead of the BBC drama's return next year

News
In this photo illustration, the Twitter logo and hashtag '#Ring!' is displayed on a mobile device as the company announced its initial public offering and debut on the New York Stock Exchange on November 7, 2013 in London, England. Twitter went public on the NYSE opening at USD 26 per share, valuing the company's worth at an estimated USD 18 billion.
news

News
people

London 'needs affordable housing'

Arts and Entertainment
music Band accidentally drops four-letter description at concert
Life and Style
tech
News
ebooksNow available in paperback
News
peopleIan Thorpe addresses Ricky Martin rumours
Arts and Entertainment
'Africa' will be Angelina Jolie's fifth film as a director
film

Mr and Mrs Smith star admits she's 'never been comfortable on-screen'

Arts and Entertainment
Australia singer Iggy Azalea has been attacked by Eminem in a new rap
music

Singer was ordered not to 'blow her rape whistle' in song 'Vegas'

Extras
indybest
News
Myleene Klass
people
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Reach Volunteering: Trustee – PR& Marketing, Social Care, Commercial skills

Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...

Reach Volunteering: Charity Treasurer

Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...

SThree: Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...

Ampersand Consulting LLP: Markit EDM (CADIS) Developer

£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...

Day In a Page

US immigration: President Obama ready to press ahead with long-promised plan to overhaul 'broken system' - but will it get past a Republican-controlled Congress?

Immigration: Obama's final frontier

The President is ready to press ahead with the long-promised plan to overhaul America's 'broken system' - but will it get past a Republican-controlled Congress?
Bill Cosby rape allegations explained: Why are these allegations coming out now? Why didn’t these women come forward earlier? And why has nobody taken legal action?

Bill Cosby rape allegations explained

Why are these allegations coming out now? Why has nobody taken legal action? And what happens next for the man once thought of as 'America's Dad'
Four years of excruciating seizures caused by the 1cm tapeworm found burrowing through a man's brain

You know that headache you’ve got?

Four years of excruciating seizures caused by the 1cm tapeworm found burrowing through a man's brain
Travelling to work by scooter is faster than walking and less sweaty than cycling, so why aren’t we all doing it?

Scoot commute

Travelling to work by scooter is faster than walking and less sweaty than cycling, so why aren’t we all doing it?
Paul Robeson: The story of how an American icon was driven to death to be told in film

The Paul Robeson story

How an American icon was driven to death to be told in film
10 best satellite navigation systems

Never get lost again: 10 best satellite navigation systems

Keep your vehicle going in the right direction with a clever device
Paul Scholes column: England must learn to keep possession and dictate games before they are exposed by the likes of Germany and Brazil

Paul Scholes column

England must learn to keep possession and dictate games before they are exposed by the likes of Germany and Brazil
Michael Dawson: I’ll thank Spurs after we win says defender as he prepares to return with Hull

Michael Dawson: I’ll thank Spurs after we win

Hull defender faces his struggling former club on Sunday ready to show what they are missing. But he says he will always be grateful to Tottenham
Frank Warren column: Dr Wu has big plans for the professionals yet he should stick to the amateur game

Frank Warren column

Dr Wu has big plans for the professionals yet he should stick to the amateur game
Synagogue attack: Fear unites both sides of Jerusalem as minister warns restoring quiet could take 'months'

Terror unites Jerusalem after synagogue attack

Rising violence and increased police patrols have left residents of all faiths looking over their shoulders
Medecins sans Frontieres: The Ebola crisis has them in the headlines, but their work goes far beyond West Africa

'How do you carry on? You have to...'

The Ebola crisis has Medecins sans Frontieres in the headlines, but their work goes far beyond West Africa
Isis extends its deadly reach with suicide bombing in Kurdish capital

Isis extends its deadly reach with suicide bombing in Kurdish capital

Residents in what was Iraq’s safest city fear an increase in jihadist attacks, reports Patrick Cockburn
Underwater photography competition winners 2014 - in pictures

'Mysterious and inviting' shot of diver wins photography competition

Stunning image of cenote in Mexico takes top prize
Sir John Major: Negative West End portrayals of politicians put people off voting

Sir John Major hits out at theatres

Negative West End portrayals of politicians put people off voting
Kicking Barbie's butt: How the growth of 3D printing enabled me to make an army of custom-made figurines

Kicking Barbie's butt

How the growth of 3D printing enabled toy-designer to make an army of custom-made figurines