UNIVERSAL APPEALED

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Warners is still the bridesmaid as the EU and the US clears the way for this acquisition.

This is a deal that has far-reaching consequences for the music industry as a whole.  The deal went through in September and it has some conditions attached to it.   While the US had no conditions to the merger, the EU said that some assets had to be sold.

Universal had to offload the Parlophone label (except The Beatles), Chrysalis, EMI France, EMI Classics and Mute as well as EMI’s 50% stake in the Now That’s What I Call Music brand. So while Virgin Records’ current big acts (including Emeli Sandé and Katy Perry) are picked up by Universal, Coldplay, Tinie Tempah, Kylie Minogue and Pet Shop Boys are among those who are technically out in the cold until someone picks them up.  Since the regulators say that the only people can buy these acquisitions, equity firms are off limits.

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