Sony buys out Jackson Estate to take control at Sony/ATV

Sony is buying the 50% of Sony/ATV Music Publishing which it doesn't currently own from the Jackson Estate for the reported sum of $750m. Reports say that the Estate will retain its 10% stake in EMI Music Publishing. The sale completes the process that began in September 2015 when Sony exercised a right to buy that has existed since the joint venture was formed by Michael Jackson and Sony in 1995. The transaction is still subject to regulatory approvals. The Jackson Estate will also retain its interest in a number of other music assets, including all of Michael Jackson's master recordings as well as Mijac Music, the publishing company that owns all of the songs written by Michael Jackson.

Pandora ink deal with Sony/ATV

Pandora has agreed a landmark direct multi-year licensing deal with Sony/ATV in the US. The deal means that Pandora "has effectively bypassed the standard US compulsory licensing process – and its custodians, collection societies ASCAP and BMI – to gain access to Sony/ATV’s repertoire."

As a result, Sony/ATV says it has been able to negotiate improved rates for its 4 million copyrights directly, while Pandora says it will ‘benefit from a greater rate certainty and the ability to add new flexibility to the company’s product offering over time’. A similar direct agreement was reached by Pandora with BMG last year, while the independent labels recorded music body Merlin has also agreed a direct deal with the platform

http://www.musicbusinessworldwide.com/pandora-strikes-direct-us-licensing-deal-sonyatv/

EC approves Sony/ATV's EMI deal

The European Commission has approved the deal in which the Sony/ATV led consortium will acquire EMI Music Publishing. Confirming the deal had been approved in Europe, the EC's Competition Commissioner Joaquín Almunia said "[The consortium] offered to divest valuable and attractive catalogues containing bestselling titles as well as works of successful and promising authors. I am therefore satisfied that the competitive dynamics in the online music publishing business will be maintained so as to ensure consumer choice and cultural diversity". Martin Bandier said "Having spent over seventeen years of my professional life helping to build EMI Music Publishing, today is not only an important milestone on the path to final approval, but a very special day for me, personally". The EC approved the deal on the basis of the proposed sale of the Virgin-branded songs catalogue, plus the Famous UK catalogue and some key songs by prominent Anglo-American artists, which were designed to specifically deal with those EC concerns. Although the Sony/ATV deal still needs approval in the US, and is also being investigated in Australia and Brazil, securing approval in Europe with just a one-stage investigation is a considerable step forward for the deal. Not everyone is happy – commenting on the EC approval IMPALA’s Executive Chair Helen Smith told reporters: "It sounds like the worst possible result for European writers and publishers, as well as anyone who needs to rely on fair terms to access music

US Talent Unions back UMG on EMI takeover

In a surprise move, two of the US’s biggest talent unions have come out in support of Universal’s takeover of EMI’s recorded music division on the ground that UMG would, unlike previous owners Terra Firma, actually invest in music and musicians. In a letter to the U.S. Federal Trade Commission Chairman Jon Leibowitz The American Federation of Musicians said that UMG had shown “compliance with and respect for its collective bargaining agreements has been positive when compared to its peer companies” and that “Sustaining the EMI legacy” under Universal’s ownership “would appear to benefit AMF recording musicians.” The recently merged The Screen Actors Guild and the American Federation of Television and Radio Artists said Universal has shown commitment to the music industry, investing in new artists and innovative musical genres in a separate letter saying “For EMI to be left to further drift into oblivion, or for EMI to be acquired and sold off in pieces by capital investment speculators with no appreciation for, or commitment to, artists who fuel the recording industry, would ill serve the industry,” SAG-AFTRA said.

Sony musical chairs

Sony Corp has confirmed a number of personnel changes in its American division as Kazuo Hirai takes on the role of overall CEO for the Sony Group. Sony Pictures Entertainment boss Michael Lynton also becomes CEO for Sony Corporation Of America. Sony General Counsel Nicole Seligman will also become President, heading up business and legal affairs for the division. Sony Music's Doug Morris and Sony/ATV's Marty Bandier will both report to Lynton. Sony Corporation Of America's CFO Rob Wiesenthal will move into the Sony/ATV music publishing company as Chief Strategy Officer, reporting to Bandier, and overseeing all territories outside North America and the UK.

EMI sale raises more competition issues

Whilst its rumoured that Universal Music may well be selling some of their music publishing catalogues to fund their planned purchase of EMI's recorded music divisions, UMG has so far resisted the temptation to offer concessions to competition regulators in Europe during the European Commission's initial investigation into the proposed acquisition. However, Sony/ATV has apparently offered concessions in a bid to allay fears about its acquisition of the EMI music publishing business. Sony/ATV (Sony own the company along with Michael Jackson's estate) is leading a consortium of investors to buy EMI Music Publishing, which is likely to remain a separate entity if the takeover goes ahead - but even an independent EMI would still report into Sony/ATV's management. The EC confirmed Sony/ATV had offered concessions yesterday, but gave no details as to what exactly they were. The regulator added that the proposals would push back its phase one investigation into the Sony deal until 19th April, when it will announce whether the Sony-led consortium has won approval, or whether a full three month inquiry will be required for this deal too.

Meanwhile, in the US, California's Attorney General Kamala Harris has reportedly started making her own inquiries into the two EMI deals, separate from the ongoing competition investigation being conducted in the US by the Federal Trade Commission. According to Bloomberg, Harris's office has made contact with various people and organisations likely to be affected by the deal, though it's not clear to what end, or what power the Attorney General would have to hinder any deal-making if both transactions were approved at a federal level. And the Commerce Commission in New Zealand has invited interested parties to make submissions to its inquiry into Universal Music's proposed takeover of the EMI record companies. Areas on which the Commission says it will be focusing include Universal's claims that the independent sector in New Zealand currently enjoys a strong competitive position, the extent to which artists can now circumvent the label system, and the extent to which piracy limits the big rights owners' power in setting prices, especially in the digital domain. A final decision is due on 13 May although the European Commission has said that it will need until August to review Universal's EMI bid. In Europe the acquisition is being strongly opposed by pan-European indie label trade body IMPALA, while Warner Music is thought to be lobbying against the deal in both the US and Europe.