Sony buys EMI Music Publishing in $1.9 billion deal

The agreement is Sony’s first major deal under new CEO Kenichiro Yoshida, who noted the music business has enjoyed a ‘resurgence’ in recent years. (AFP)
Updated 22 May 2018
0

Sony buys EMI Music Publishing in $1.9 billion deal

  • The deal adds a catalogue of more than two million songs — including some of the greatest hits from the first half of the 20th century — to Sony’s already huge repertoire
  • Judy Garland’s “Over the Rainbow” continues to be a top-10 money-spinner even today, more than 75 years after its initial release

TOKYO: Japanese entertainment giant Sony on Tuesday unveiled a $1.9-billion deal to buy industry titan EMI Music Publishing, which has the rights to songs by the likes of Queen and Pharrell Williams.
The deal adds a catalogue of more than two million songs — including some of the greatest hits from the first half of the 20th century — to Sony’s already huge repertoire.
The agreement is Sony’s first major deal under new CEO Kenichiro Yoshida, who noted the music business has enjoyed a “resurgence” in recent years due to streaming services provided by companies such as Spotify and Apple.
With this purchase, Sony “is becoming one of the biggest music publishing companies, both in name and reality,” Yoshida told reporters.
“We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number-one position in the music publishing industry,” Yoshida said in an earlier statement.
“I believe this acquisition will be a particularly significant milestone for our long-term growth,” added Yoshira, who took the Sony helm last month.
Sony said it had signed a deal with Abu Dhabi-based investment firm Mubadala to buy its 60-percent holding, giving the Japanese firm an indirect stake of approximately 90 percent.
The agreement values EMI Music Publishing at $4.75 billion, the Sony statement said, adding that “the closing of the transaction is subject to certain closing conditions, including regulatory approvals.”
Yoshida also Tuesday unveiled Sony’s latest strategic plan, which aims to bolster its content business — pursuing the direction his predecessor Kazuo Hirai had taken to revitalize one of Japan’s best-known firms.
“We are a technology firm, but the technology means not only electronics but also entertainment and content-creation” in today’s world, Yoshida said.
Sony will continue to build up its content services — as shown by Tuesday’s deal — and also invest heavily in cutting-edge technologies including image sensors, he said.
“This is part of Sony’s strategy under Yoshida to beef up its entertainment businesses,” noted Hideki Yasuda, an analyst at Ace Research Institute in Tokyo.
“In the music business, copyrights are crucial. So, the deal is meaningful, and its price appears practical and reasonable,” the analyst said, adding that success would depend on the quality of the content Sony creates in the future.
The electronics and entertainment behemoth last month reported record annual profits of $4.5 billion, a roaring recovery supported by better sales across the board and helped by box office blockbusters like its Jumanji reboot.
Those figures were seen as a fitting send-off for Hirai, who recently stepped down as the firm’s chief executive after spending the past six years pulling the firm out of deep financial troubles.
Hirai led an aggressive restructuring drive at Sony, cutting thousands of jobs while selling business units and assets.
EMI is the second-largest music publishing company by revenue and either owns or administers some two million songs, including classics by the likes of Queen, Sam Smith and Pharrell Williams.
As for Sony, it already owns 2.3 million copyrights, including the Beatles catalogue, as well as being a massive player in IT, communications, film and gaming.
EMI holds a “comprehensive and diverse collection of copyrights for music and lyrics” from a “wide variety of iconic and popular songwriters,” the statement said.
Judy Garland’s “Over the Rainbow” continues to be a top-10 money-spinner even today, more than 75 years after its initial release, it added.
Current songwriters under its banner include Kanye West, Alicia Keys, Drake, Pink, Fetty Wap and Hozier.
Investors appeared dubious about the acquisition and the new strategic plan however, with Sony stock down around 1.2 percent in the afternoon, underperforming the wider Japanese market, which was fractionally weaker.


Sri Lanka calls for global coalition to tackle rising dollar

Updated 23 October 2018
0

Sri Lanka calls for global coalition to tackle rising dollar

  • The island’s currency bottomed out at a record-low 174.12 rupees to the dollar
  • The rupee has shed more than 12 percent of its value this year and Sri Lanka fears it could slide further

COLOMBO: Sri Lanka on Tuesday called for a “coalition of the willing” to help stabilize free-falling emerging market currencies around the globe, as the beleaguered rupee slumped to fresh lows.
The island’s currency bottomed out at a record-low 174.12 rupees to the dollar, resisting a slew of measures by policymakers to arrest its steady decline.
The rupee has shed more than 12 percent of its value this year and Sri Lanka fears it could slide further as US sanctions squeeze Iran, the island’s chief source of oil.
A stronger dollar has made it difficult for emerging markets to repay debts and battered global currencies from Turkey to India and Argentina.
Finance Minister Mangala Samaraweera invited those nations experiencing currency crises to visit Colombo and hash out a strategy.
“The rise of the dollar is having a serious impact on our currencies. We are not the only one affected,” he told reporters in the Sri Lankan capital.
“I want to build a coalition of the willing to deal with this problem. I don’t see the global situation improving any time soon.”
Washington pulled out of a landmark 2015 nuclear deal with Iran in May and has been reimposing punishing sanctions on the Islamic republic, targeting in particular its financial system.
Iran not only supplies Sri Lanka with most of its oil, but is one of its chief buyers of the island’s celebrated tea.
Samaraweera has warned that blockading Iran will have ripple on effects on Sri Lanka, which has been unable to stop the rupee from nose diving.
Last month, Colombo curbed its state institutions and public servants from importing cars to reduce the outflow of foreign capital.
Banks were also ordered to restrict lending for purchasing overseas and consumer goods, but the rupee has continued its decline.
In August, the government substantially increased taxes on small cars to discourage imports, but officials said there was still pressure on foreign exchange reserves to finance big-ticket imports.