• ABOUT
    • Contact
    • The Team
    • Editorial Calendar
    • Events
    • FAQ
    • Use & Privacy Policy
  • ADVERTISE
  • ROWFAX
  • THE SPORTS CREDENTIAL
  • JOB LISTINGS
MusicRow.com
  • CALENDARS
    • Album Releases
    • Single Releases
    • Industry Events
  • OBITS
  • CHARTS
    • Radio Chart (Current)
    • Radio Chart (Archives)
    • No. 1 Challenge Coin
    • Songwriter Chart (Current)
    • Songwriter Chart (Archives)
  • REVIEWS
  • MY STORY
  • NEWSLETTER
    • Newsletter (Current)
    • Newsletter (Archives)
  • SUBSCRIBE
  • STORE
  • Search
  • Menu

UMG Acquisition of EMI Divides Indie Community

July 25, 2012/in Featured /by Sarah Skates

When Universal’s acquisition of EMI was first announced, members of the independent label community were among the most vocal opponents, citing concerns that the newly combined major would control too much of the market.

Since then, European regulators have expressed similar concerns, and requested Universal and EMI divest a significant amount of assets—about $300 million worth according to the New York Times— in order to win government approval of the transaction. The European Commission wants to reduce the combined market share to less than 40% in any given territory.

As a result, indie labels now stand to benefit from the proposed transaction because they could purchase the assets EMI is selling.

EMI imprints and/or back catalogs up for bids include Virgin, Mute, and Chrysalis—labels that were born as indies and later sold to EMI. UMG boss Lucian Grainge, who would prefer to keep these catalogs out of the hands of the other majors, is trying to entice the entrepreneurs who founded the indies to purchase them back. He is even offering financing to indies. Virgin founder Richard Branson is reportedly working with Patrick Zelnik, the head of the French label Naïve, on a bid for Virgin. Mute founder Daniel Miller is also eyeing his former catalog.

According to the NYT, these opportunities have internally strained Impala, the international indie label trade organization which staunchly opposes the UMG/EMI transaction. Some of Impala’s most prominent members now stand to gain from the deal the group is fighting, including Zelnik who is an Impala board member.

Additionally, the Wall Street Journal reports that the European Commission may not be satisfied with UMG’s proposed back catalog divestments and may urge Universal to sell off the rights to newer music, which could expose the label group to breach of contract lawsuits.

Moreover, UMG may have to pay nearly the entire $1.9 billion purchase price before antitrust regulators in Europe have approved the deal, according to the WSJ.

Universal has until Aug. 1 to file proposed measures to appease the European Commission, which would then have until Sept. 27 to rule on the acquisition.

  • Author
  • Recent Posts
Sarah Skates
Sarah Skates has been a writer and editor in the music business since 2004. She is a longtime contributor to MusicRow.
Latest posts by Sarah Skates (see all)
  • Huntsville’s Orion Amphitheater To Open With Landmark Concert Event - December 21, 2021
  • Gene Higgins Comes Out Of Retirement, Announces New Consulting Firm - December 20, 2021
  • Doug Waterman Exits ‘American Songwriter’ - December 15, 2021
Tags: featured-2
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share by Mail
https://musicrow.com/wp-content/uploads/2012/07/umg-emi-1.jpg 271 390 Sarah Skates https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png Sarah Skates2012-07-25 14:59:392012-07-25 14:59:39UMG Acquisition of EMI Divides Indie Community
You might also like
Weekly Register: Gary Allan, Randy Houser Debuts
Weekly Chart Report (1/28/11)
Weekly Chart Report (9/02/11)
CMA Awards Afterparty Pics [Ongoing Updates]
ASCAP Honors Top Christian Songs, Performers At 39th Annual Christian Awards
UMPG Appoints Alperin to Sr. VP Role

RECENT NEWS

  • Chris Janson Talks New Album, Working With Eric Church, & Investing In Talent [Interview] May 6, 2022
  • Steve Earle Slates Jerry Jeff Walker Tribute Album For May May 6, 2022
  • Aaron Raitiere Delivers Debut Album ‘Single Wide Dreamer’ May 6, 2022
  • Jake Owen Adds Fall Leg To ‘Up There Down Here Tour’ May 6, 2022
  • Bowen Young To Headline Gilda’s Club Annual Songwriter’s Night May 6, 2022
  • Live Nation Q1 Results: Continued Momentum From Return Of Live Events, Tour Sponsorship May 6, 2022
  • DISClaimer Single Reviews: ‘Nashville Treasure’ Sheryl Crow Releases Dreamy Ballad May 6, 2022
  • Beth Nielsen Chapman Shares First Single From Upcoming Album ‘CrazyTown’ May 6, 2022
  • Jameson Rodgers Captures Live Show Rush On New Album May 6, 2022
  • Tim McGraw Trades Truck For MusicRow No. 1 May 6, 2022
  • CRB Settlement Reached To Increase Songwriter Royalties To 12 Cents Per Song May 5, 2022
  • RecordingTheMasters Announces New Wave Of Cassette-Only Reissues May 5, 2022
  • Kane Brown Announces International ‘Drunk Or Dreaming Tour’ May 5, 2022
  • ACM Lifting Lives Announces New Grant Cycle For Mental Health Awareness Month May 5, 2022
  • Sixth Annual SIP Cabo Unveils 2022 Dates, Initial Lineup May 5, 2022

Like Us on Facebook

Follow Us on Twitter

Tweets by MusicRow
© 2022 Music Row Enterprises, LLC – All rights reserved.
  • Facebook
  • Twitter
  • Instagram
Scroll to top