Investor Group Inc. Sony Corporation of America Completes Acquisition of EMI [Update] Pst #54

[8701girl]

Re: Investor Group Including Sony Corporation of America Completes Acquisition of EMI Music Publishi

So its all good for mj/ mj estate?

 

[Moonwalker.Fan]

Re: Sony/ATV buying EMI publishing ?

So, that means the Estate will have no stake in this deal? Can someone explain what will be estate's profits from this?

Simply, Sony/ATV=50% for MJ Estate
EMI=38% for Sony/ATV=19% for MJ Estate.

BUT :
Publishing Right : 65% for The Beatles ; 17,5% for Sony; 17,5% for John Branca/ John Mcclain.

-------------------

Last year, publishing companies generated about $3.9 billion in revenue, relatively unchanged over the last several years, according to Simon Dyson, editor of Music & Copyright, an industry newsletter.


Publishing's revenues have held up better than the recording side because there are more streams of revenue that aren't tied to declining sales of compact discs. Publishers and songwriters share a cut of about 8 to 9 cents for every 99-cent download purchased from online retailers like Apple Inc.'s iTunes. But they also make money from radio airplay, free online streaming and the placement of songs in movies, TV shows and commercials.


Sony/ATV's 11.7 percent share and EMI's 19.3 percent share means the combined entity will now control about 31 percent of the global market for music copyrights, leapfrogging past the 22.2 percent share of Universal Music Publishing Group, Dyson said. The next largest is Warner Music Group Corp.'s Warner Chappell with 14.1 percent. All independent music publishers combined have a 32.6 percent share.


Dyson said Sony/ATV will have increased leverage in setting licensing rates for new digital music startups if it chooses to bypass royalty collection societies like The American Society of Composers, Authors and Publishers in the U.S. But he acknowledged that would require a major shift in how most business is conducted.


"If you're a big publisher with a 10 percent lead, you're going to have a big say in what licensing rates are," Dyson said.
Fostering fair competition in the digital landscape was one of the concerns of regulators, according to Sony/ATV's Bandier. The company argued that even if there were still four major music publishers, new digital entrants like streaming music services Spotify or Songza would need to go to all of them to start up any business that has a chance to survive. It would need EMI's songs by Kanye West and Rihanna as much as it would need Sony/ATV's Beatles, Lady Gaga and Taylor Swift, Bandier said.


"It didn't make a difference if you'd put them together or separate, you'd still have to make a deal if you were a digital service that was just starting," Bandier said in an interview. "We had to convince all of the regulators that that was the case. We're happy we're past that. We never felt it would be an issue."

http://www.huffingtonpost.com/huff-wires/20120629/us-sony-emi/

BUT, one of the comments on Billboard.biz:

All these mergers can only mean better cost savings to consumers, however for independent artist it means that less control of their craft, as most big companies and mergers by default are embedded with red-tape, beauracracy in org charts and the mighty Wall Street Walts, the major SONY/ATV - EMI label and publishing suits rejoice, independent music artists, managers and supporting staffs should get together to keep these giants in check. Let's see what happens in two years when all the EMI folks are let go and many should go to form their own independent labels or companies that support independents, take a stand or just wait 5 years from now Sony ATV will be bought by GOOGLE, who needs labels everything is on the CLOUD these days!

The percent-ownership of each were edited out of the report, although sources say Sony and the Jackson estate would own 38%.

The EU gave its approval after the buyers' offer to sell off a catalog that generated 10-20 million euros annually and then revised that offer by complementing the assets it initially suggested by adding more songwriters and making the Virgin deal global in basis, instead of just selling the Virgin rights for Europe, which increased the divested annual revenues to the 20-30 million Euros range.


Meanwhile, the EU document disclosed that among the catalogs of the Virgin songwriters and other individual songwriters that will be completely divested are: Duffy, Matt Cardle, Bullet For My Valentine, Orchestral Manoeuvres in The Dark's Andy McClusky, Bryan Ferry, Culture Club, Devo, Fine Young Cannibals, Iggy Pop, Lenny Kravitz, the Prodigy's Liam Howlett, Martha and the Muffins, Guru Josh AKA Paul Walden, Richard Ashcroft, Robbie Williams, Soul II Soul, Stereo MCs, Tears For Fears, Terence Trent D'arby, Texas, the Beloved, the Human League, Ben Harper, the Goo Goo Dolls, Ozzy Osbourne, Kurt Cobain, John Barry, Jim Steinman, the Crystal Method, Tool, Warrant, Mark Ronson, and Take That's Gary Barlow, Jason Orange and Howard Donald. It will also divest Famous Music U.K., which includes song catalogs of Ian Dury and Chaz Jankel, Placebo, and the Kooks.

The EU document suggests that it would prefer the catalogs be sold in whole to a new entrant to the music-publishing sector, and it is appointing a trustee to monitor the divestment, which must be completed within six months.

In studying how Sony/ATV and EMI will look after the deal is completed, the EU noted that the two parties combined share of overall music publishing revenues exceeds 40% only in Romania (40-50%). The Parties' combined share of such revenues ranges between 30-40% in seven countries (Belgium, Estonia, Greece, Hungary, Poland, Sweden and the UK). On an EEA-wide level the Parties estimate their combined share of overall music publishing revenues to be in the region of 25%, closely followed by Universal (20-30%).

http://www.billboard.biz/bbbiz/indu...led-group-closes-purchase-of-1007463562.story

 

[goldiee]

Too bad Michael isn't here to enjoy the rewards. His death has sure made a lot of people richer.

 

[mkgenie]

BUT :
Publishing Right : 65% for The Beatles ; 17,5% for Sony; 17,5% for John Branca/ John Mcclain.

WHAT DOES THIS MEAN?

 

[qbee]

BUT :
Publishing Right : 65% for The Beatles ; 17,5% for Sony; 17,5% for John Branca/ John Mcclain.

WHAT DOES THIS MEAN?

I have no idea what Moonwalker fan means by posting that, I cant find those numbers anywhere
and they have nothing to do with this deal .. I'm as confused as you.

 

[qbee]

I hope this will help explain it in simpler terms


The Buyers/Investors
An investor group comprised of ...
Sony Corporation of America, the Estate of Michael Jackson, (Sony/ATV)
Mubadala Development Company PJSC,
Jynwel Capital Limited,
the Blackstone Group's GSO Capital Partners LP,
David Geffen
today announced the closing of its acquisition of EMI Music Publishing from Citigroup

It's stated Sony Corp and the MJ Estate have a vested interest of 38% in EMI. If that is correct
Sony Corp holds 19% .. MJ Estate holds 19% = 38%


The Administraters of the EMI
Sony /ATV Will also manage/administrate the EMI (Sony/ATV will be paid to manage it)
So The MJ Estate who owns 50% of Sony/ATV will also recive 50% of the administration fee


What does this deal mean for the Michael Jackson Estate
They own 19% of EMI
They will also get paid 50% of whatever is being paid for administrating/managing the EMI

Plus they still own 50% of the Sony/ATV Catalog

 

[Moonwalker.Fan]

BUT :
Publishing Right : 65% for The Beatles ; 17,5% for Sony; 17,5% for John Branca/ John Mcclain.

WHAT DOES THIS MEAN?

Sorry, it had nothing to do with the EMI deal, but ... as for the publishing right in Sony/ATV, MJ Estate or Sony have both 17,5% share, but its a case in point for the Beatles catalog (Sony/ATV)=251 songs...., afaik.

I know, there are too many numbers and percentages..., sometimes its confusing... who has what share for what....

 

[MsMo]

Sony/ATV Become Publishing Leaders As EMI Deal Goes Through

30 June, 2012 The Sony/ATV-led consortium which bought EMI Music Publishing for $2.2 billion dollars finalised the deal on Friday, creating a new global market leader in music publishing in the process...

http://themusic.com.au/news/all/2012/06/30/sony-atv-complete-emi-music-publishing-acquisition/

In other words, Sony/ATV (Michael Jackson Estate) is now the largest music publishing company in the WORLD, over Universal.

MJ Estate still owns 50% of Sony/ATV

If I understand the details correctly, the MJ Estate now also owns 19% of EMI

Sony/ATV (Michael Jackson Estate) will also administer 100% of EMI as they do Sony/ATV.

 

[Bonnie Blue]

That's a massive purchase. So if sony/atv own 38% equity in emi publishing, mj's estate will have to pay back, over a period of time. a debt of $418m (19% of purchase price). MJ's estate must be in good financial shape to do that.

If annual revenue from music publishing is $3.9bn, sony/atv with 11.7% of market share would be getting around $456m pa. I know other music catalogues have been added since then to sony/atv, but still, mccartney must be kicking himself at not shelling out $40 odd million for the atv catalogue 25 yrs ago.

I'm sure there's lots of variables, but if emi had 19.3% of market share of music publishing and went for $2.2bn, then on those figures sony/atv with 11.7% share would presumably be going for around £1.333bn.

 

[Billie Jean 78]

Does anyone know:
1. how much income per year Sony/ATV has been having in the last couple of years?
2. How much income is Sony/ATV counting on after the latest purchase of EMI?
3. Does the Estate still own 50% of Sony/ATV?
4. Has the Estate repaid the debt?

 

[Moonwalker.Fan]

Does anyone know:
1. how much income per year Sony/ATV has been having in the last couple of years?
2. How much income is Sony/ATV counting on after the latest purchase of EMI?
3. Does the Estate still own 50% of Sony/ATV?
4. Has the Estate repaid the debt?

1/ Its been known that annual income of Sony/ATV is 70-80 mill., some say 50-60 million
2/ because of a huge debt of EMI, its not clear, but its several tens of millions:

The EU gave its approval after the buyers' offer to sell off a catalog that generated 10-20 million euros annually and then revised that offer by complementing the assets it initially suggested by adding more songwriters and making the Virgin deal global in basis, instead of just selling the Virgin rights for Europe, which increased the divested annual revenues to the 20-30 million Euros range. - http://www.billboard.biz/bbbiz/indu...led-group-closes-purchase-of-1007463562.story

3/ YES, The Estate does own the 50% of Sony/ATV
4/ now, the "debt" is about 200-250 million

The active Michael Jackson related companies:
New Horizon Trust I. II. and III. (Active in Delaware; Holds publishing rights against debts; Register date: 11/30/1998 // 02/09/1999)

 

[Moonwalker.Fan]

[h=1]Sony/ATV MD reported to have left[/h]
Rak Sanghvi is understood to have exited as Sony/ATV UK managing director as the company gears up for the takeover of EMI Music Publishing.

Sanghvi joined the company in 1997, initially as business affairs manager before becoming general manager and then deputy managing director before taking up the position of managing director in May 2005 following the departure of Charlie Pinder. He previously worked as a solicitor with City firm City firm Nicholson, Graham and Jones on corporate joint ventures, TV and film production, and distribution before joining Philips Interactive Media.
The Sony/ATV-led consortium, which includes the publishing company’s two partners Sony Corporation and the Michael Jackson estate and also the Mubadala Development Company, won European Commission approval in April for its $2.2bn (£1.4bn) takeover of EMI Music Publishing. This came with a series of strict conditions, including the disposal of assets and having to let go of a dozen contemporary Anglo-American songwriters.
Approval for the deal is still awaited in other territories, including the US where it is being examined by the Federal Trade Commission.
http://www.musicweek.com/story.asp?sectioncode=1&storycode=1050101&c=1

 

[Moonwalker.Fan]

[h=2]Sony consortium acquires EMI Publishing after getting FTC approval[/h]

A Sony-led consortium handed over $2.2 billion to Citigroup on Friday, and took collective ownership of EMI Music Publishing, meaning the once British-owned major music company has now been officially split into two. The US bank will keep hold of the other half for the time being while Universal’s bid to acquire it continues to be investigated by regulators in America and Europe.


Sony and its partners completed their takeover of the EMI music publishing business within hours of the deal getting approval from America’s Federal Trade Commission. The European Commission gave the transaction its approval, subject to a number of remedies, back in April. Those remedies mean that, as Sony takes ownership of EMI Publishing, the Virgin and Famous UK song catalogues are now up for sale. BMG, which bid against the Sony consortium for EMI outright, is now expected to lead the bidding for these not insignificant former EMI publishing portfolios.

Confirming the Sony-led purchase had gone through, the newish boss of Sony Corp, Kazuo Hirai, told reporters this weekend: “Music publishing, along with the rest of our entertainment companies, has been a bright spot in our business portfolio, and we expect that trend to continue with this important acquisition”.
Meanwhile Marty Bandier, the former EMI Music Publishing chief who now heads up Sony’s publishing business, and who will now lead both companies, said: “Today is a truly special day. As I become reunited with the company that has many of the greatest songwriters and songs of all time, I look forward to helping create the best music publishing company in the world, with the extraordinary talent – artists, songwriters and staff – at the combined Sony/ATV and EMI”.

Although Bandier refers to a “combined Sony/ATV and EMI”, the two publishing companies will technically remain separate entities, because of the slightly complicated nature of the acquisition, ie Sony, which owns 50% of Sony/ATV, will actually be a relatively small shareholder in EMI Publishing overall. As previously reported, that ownership structure was one of the reasons the European Commission approved the deal, believing that the involvement of other investors would ensure Sony itself wouldn’t become too dominant.

According to the European Commission’s report on the acquisition, published last week, Sony and its partner in Sony/ATV, the Michael Jackson estate, will own their stake in EMI – believed to be about 38% – via one holding company. The consortium’s other investors, which includes Mubadala Development Company PJSC, Jynwel Capital Limited, the Blackstone Group’s GSO Capital Partners LP and David Geffen, will hold their stakes via another JV holding group. The EMI publishing company will have its own board made up of reps of each investor organisation.
But day-to-day, Bandier will be in charge of EMI Music Publishing as well as Sony/ATV, giving him control of over two million song copyrights. It’s thought, partly on the basis of a document leaked earlier this year, that EMI Publishing will continue to have its own A&R divisions, and will continue to sign and work with songwriters directly, though rights administration will be outsourced to Sony/ATV. That arrangement will likely result in substantial redundancies at EMI Publishing, though presumably some will be offered roles at Sony/ATV, which will need to increase its administration resource.

Exactly how all this will work is not yet known – and not even Bandier and his top team will completely know what they are going to do until they get access to and knowledge of all of EMI’s inner workings, which will presumably happen this week. Plus, of course, there is the added complication of the big split of the EMI publishing business and EMI record company, and what to do with any group level units which don’t directly belong to either. After months and arguably years of uncertainty, some key decisions will now start being made regards the future of the various EMI businesses and the people who work there.

Universal’s bid to buy the EMI record company is still ongoing, of course, with EC regulators undertaking a more in depth investigation on that one, and the FTC also still considering the deal. Although there were opponents to Sony’s EMI Publishing bid too, opposition to Universal’s acquisition has been more vocal, with both Warner Music and the independent label community expressing big concerns.

Sony Music – Universal’s main rival in the record industry, in that it is of a similar size – has so far been very quiet about its competitor’s bid to jump ahead in market share terms through an EMI acquisition. After all, raising objections to Universal’s big EMI record label bid while its own sister company was involved in an even bigger deal over the EMI publishing company would not have been wise. Though Billboard cites sources who speculate that, with Sony/ATV’s regulatory approval in the bag, Sony Music might now start publicly objecting to the Universal deal. Which would be cheeky, but interesting.

http://www.thecmuwebsite.com/articl...es-emi-publishing-after-getting-ftc-approval/

 

[peru94]

didn't michael sell 25% of his share, and sony bought it?....i always thought mj owned 50% but after doing some research ,i saw mj sold his 25% a few years ago...but maybe the estate bought it back,although i don't think sony would sell back to the estate....


it;s from cnn 2007
and here iit is the article
http://transcripts.cnn.co...ng.01.html

transcripts of Nancy Disgrace show exactly a year ago in fact 07/15/07!



He`s owed over $300 million. He took out -- he used collateral. He has a 50 percent (INAUDIBLE) in the Sony/ATV catalog, which has the Beatles songs, in addition to many others, and he owed about $325 million. And he was on the verge of declaring bankruptcy.

And Sony, which owns the other 50 percent interest in that music catalog, helped Michael Jackson and arranged for new financing. You say, why would they do that? Because Sony did not want Michael Jackson to go into bankruptcy, because Sony wants that catalog. They don`t want a third party to get their interest in that catalog, so Sony helped arrange financing.

 

[elusive moonwalker]

The estate own 50% of sony/atv. no amount was ever sold. when was nancy disgrace ever a source for anything but hate and lies. sony had an option to buy 25% when mj was refinancing but that option was only available to sony for a small period of time and if i remember right (its along time ago so someone please correct me if im wrong) the option was only available if mj defaulted

re what bonnie said sorry i cant quote as im on my phone. the estate doesnt pay towards buying emi if thats what u mean? the money comes from the sony/atv company. that is totally seperate from the estate and sony the corp. sony atv gets loans and pays them back through the money the company makes. the money doesnt come from the estate

 

[Billie Jean 78]

the estate doesnt pay towards buying emi if thats what u mean? the money comes from the sony/atv company. that is totally seperate from the estate and sony the corp. sony atv gets loans and pays them back through the money the company makes. the money doesnt come from the estate

Yes, but I would think that the Estate would be getting less profit money from Sony/ATV now because Sony/ATV will first have to pay off the loan they took to purchase EMI, right? Meaning less money to be paid to J3, right? Untill the loan EMI loan is paid off?

 

[elusive moonwalker]

yes i would think so billie. as obviously less profits if you are paying back loans. but like with any business you may have short terms losses but long term gains. and you work out which is best for the long run

 

[Billie Jean 78]

What surprises me is how many purchases Sony/ATV has been able to make considering Michael himself had such a hudge loan? Plus: where does Sony/ATV get the money to purchase such a hudge catalogue cinsidering the newly acquired catalogue had a worth similar to the worth of Sony /ATV? Which bank would guarantee such a loan?

I suppose that in a couple of years from now, when all the loans are repaid and all the profits start coming in, J3 will have abnormal income.

 

[elusive moonwalker]

Mjs personal loans have nothing to do with sony/atv. they are totally seperate and have nothing to do with each other. sony/atv the company gets loans based on their own financial situation and pay back the money from the money sony/atv the company makes. the sony corps and mjs own private debts have nothing to do with the company as mj and sony corp arent investing their own money into to the deal to buy 38% of emi

 

[Billie Jean 78]

Yes I know that, what I meant was that if Sony/ATV was in such a good financial situation to be able to make such a purchase, they surely had to have quite some income, right? And why didn't Michael use that money to repay his own personal loan? I mean it was quite a lot of money. I know he had quite some costa with Neverland and that he liked spending money, but still...

Who's the one who decides what they're going to do with the company's money? I would guess the owners, in this case Michael and Sony. Why would Michael opt to invest money instead of repaying at least part of his own loans? Do you think he made the better decision?

 

[elusive moonwalker]

Mj was using the money he made from sony/atv to pay his loan. when he refinanced back in or around 2007 he set up some trusts called horizon. the money he made frony sony/atv went straight into those trusts and was used to pay the loans.

mj would get paid a certain amount fron sony atv.ivy and others will have more details than me interms of the details of the agreement. but basically you would have ppl on the board who would discuss what other cats they might want to buy or whether they shouldnt invest this year as there wasnt enough profit so it wouldnt be financially viable etc etc.

but the bottom line to your question is mj was using his wage from sony/atv to repay his personal loans

 

[Billie Jean 78]

Ok, if that is true, then how come his debt was so huge at the time of his death? If he had been repaying his debt, it would mean that his debt had been even bigger in the past!

 

[elusive moonwalker]

Horizon trust is all documented as non of the papers were sealed by the court when mj refinanced. it was well reported on and discussed on here at the time.

i think mj was paying a big intrest rate that got renegotied later on. thats why the debt never seemed to go down much. same as with the glazier family that bought manchester united. they got debts of something like 600 mill to buy the club and there used to be reports in the press about the huge amount of intrest they have to pay. also ppl like mhammed al fayed who owned harrods and was mjs friend. according to reports he sold harrods for one billion but 600 mill of that went back to the bank to pay off loans. rich ppl like al fayed and the glaziers,mj dont have 100 of millions laying around to invest they get loans.

 

[Bonnie Blue]

Re what bonnie said sorry i cant quote as im on my phone. the estate doesnt pay towards buying emi if thats what u mean? the money comes from the sony/atv company. that is totally seperate from the estate and sony the corp. sony atv gets loans and pays them back through the money the company makes. the money doesnt come from the estate

Thanks elusive, i suppose i was including the income from the sony/atv cats as mj estate revenue.

Sony had an option to buy 25% when mj was refinancing but that option was only available to sony for a small period of time and if i remember right (its along time ago so someone please correct me if im wrong) the option was only available if mj defaulted.

Yes i remember reading that, it was around 06, roger friedman got all excited about it. But by mj's death, much to roger's disappointment, mj still had 50% of the catalogue. I read somewhere that, contrary to all the conspiracies re sony, sony were/are perfectly happy with mj controlling his share of the catalogue as he didn't interfere in the daytoday running of the business, leaving it all to martin bandier, and it meant sony didn't have to find 100s of $millions to buy mj's share out.

 

[Billie Jean 78]

I read somewhere that, contrary to all the conspiracies re sony, sony were/are perfectly happy with mj controlling his share of the catalogue as he didn't interfere in the daytoday running of the business, leaving it all to martin bandier, and it meant sony didn't have to find 100s of $millions to buy mj's share out.

But surely forking out the money tu buy Michael's share out wouldn't be a problem for Sony if they are able to make billion $ purchases in 2012?

 

[elusive moonwalker]

Sony/atv has only bought a 38% share of emi they havnt spent billions.i dont know if the financial facts are available but i would presume the money for that came from a loan. sony corp is different to sony/atv. sony corp would have bought mjs 25% not sony/atv. around the time mj refinanced sony corp were not doing well and it was widely reported it was not a good time for them to pay out a huge amount to buy mjs 25% even if they wanted to. also as bonnie said sony were very happy with mjs refinance as a part of it mj agreed to let sony/atv do more deals interms of buying cats etc as before mj had refused alot of ideas. he allowed sony/atv to become abit more freeer if thats the right word

 

[Billie Jean 78]

Ok, that's better now. It's such a complicated subject, especially for someone who isn't too much into economics

The main thing for me is that the Estate (J3) never looses or sells it's 50% share of Sony/ATV because that would mean Michael's struggles to keep it were all for nothing.