All posts tagged BMG Rights Management

Post EMI Auction Round Up

As was expected by many observers,  Read more…

And then there were 3… EMI split, where does it lead?

Universal Music Group and Sony Music continue to dominate the music biz storylines this year with the unpredictable conclusion of the EMI auction, Read more…

Round Up: Dr. Luke Sony Label Deal (Finally) Announced, EMI Auction Drags On & more…

Doug Morris' "new Jimmy"

In a New York Times feature on Doug Morris yesterday, included among the expected platitudes from the new CEO of Sony Music, like describing his plan for the company as simply “to help create the pre-eminent record company in the world,” was the clever and first official disclosure of a new label deal with producer Dr. Luke, which will see the expansion of his current imprint with Sony, Kemosabe Records. The news, which we exclusively revealed back over the summer (with the New York Post picking up the item shortly after), comes with similar overtones as we initially reported, which is Morris is attempting to recreate his successful investment and development of Interscope Records with Jimmy Iovine at Universal Music Group. The new deal, which has been in negotiation for many months, will put the label on equivalent footing as Epic, Columbia and RCA, and also includes exclusivity at Sony for Dr. Luke’s producer services for five years – a component that smacks of Sony’s soon-to-lapse agreement with Rick Rubin, whose production work outside of their label system has been noted by many as part of the arrangements overall failure.  Also central to the Kemosabe deal is the purchase of a significant stake in Dr. Luke’s publishing by Sony/ATV, a move that will give the pubco an interest in what has been Luke’s highly-successful songwriting operation, which includes a stable of of up-and-coming pop composers with numerous chart-topping credits. Observers are drawing similarities to previous high-dollar publishing investments in hitmakers at their pinnacle, like Kara Dioguardi‘s Arthouse Entertainment deal… Meanwhile, Citigroup‘s auction of EMI is dragging on longer than the bank would like, with plenty of spin and speculation surrounding the action for the recorded music division. Last week saw the twist of Warner Music Group owner Len Blavatnik, pulling his bid from the table after Citi wanted him to increase the offer, though many see it simply as a negotiating tactic from the Access Industries owner. In turn, Universal Music Group, who previously was thought to be out of the running, is being touted as potentially back in, with the New York Post reporting the two sides are scheduled to meet today, though UMG’s last offer fell below Blavatnik’s. On the EMI Music Publishing side, the deal is still seen as BMG Rights Management‘s for the taking…  Elsewhere, in related news, David Bowie is reportedly on the verge of leaving EMI, which would end a 15-year relationship that gave the label rights to a large part of his catalog of classic albums. Discussions are said to be taking place with both Universal and Sony… And South African hip-hop enigma Die Antwoord are leaving Interscope Records, seemingly as abruptly as they were signed to the label in early 2010. The group, who has a publishing deal with Sony/ATV, will soon be releasing their second album via their own new label ZEF RECORDZ.

EMI Derby Ramps Up As It Winds Down

EMI auction nears finish line

Numerous recent reports have Citigroup closing a deal (or two) for the sale of EMI by the end of this week, including a New York Post piece today claiming that a fight for the recorded music arm is down to billionaires Len Blavatnik, whose Access Industries now owns Warner Music Group, and MacAndrews & Forbes Worldwide chairman Rob Perelman. On the publishing side, KKR and Bertelsmann-backed BMG Rights Management is being called the clear frontrunner, though Sony still isn’t being completely counted out. New Bertelsmann CEO Thomas Rabe who is said to be making the rounds in New York this week, is very familiar with EMI, previously serving as Bertelsmann CFO since 2006 until his recent promotion, where he kicked the tires on the music group prior to Terra Firma‘s acquisition of the company in 2007 and then again at EMI Music Publishing in 2009, in discussions that likely included Citi as well… As we mentioned back at the outset of summer, Warner Music and BMG all along have been the favorites to end up with EMI’s recorded music and publishing arms, though many other suitors entered the bidding fray as expected as well. Among the many questions we are hearing with regard to the likely new owners of EMI, is the fate of current executives on both sides following a deal – including EMI Group CEO Roger Faxon, WMG’s Edgar Bronfman Jr.Capitol & Virgin NA label prexy Dan McCarroll, EMI Music Publishing’s Big Jon Platt,  BMG’s Hartwig Masuch and Laurent Hubert and many others… Stay tuned.

In Through the Out Door: Pub Crawling at BMG, SONGS, UMPG & more

Taeko Saito joins SONGS

There has been much movement in the music publishing world over the last few weeks, including the move for Taeko Saito from working at producer management operation AAM, into the A&R department at SONGS Music Publishing.  Also new to SONGS is Josh Feingold, who comes to the boutique pubco from SESAC‘s Los Angeles office… Meanwhile, after unloading much of the creative staff absorbed in the takeover of Chrysalis, who truth be told were more than exemplary in their talent-spotting, development and artist relations skills, BMG Rights Management has added Jon Sidel on the west coast and Kate Hyman out east to their creative department. And of course Bertlesmann announced a change at the top, with Thomas Rabe succeeding as the new CEO… In related news, former Bug Music CEO John Rudolph left the company following BMG’s recent purchase of the publishing outfit, while elsewhere, former Chrysalis North American president Kenny MacPherson and A&R VP Jamie Cerreta are rumored to be eyeing the void left in the independent music pubco sector after all the recent acquisitions – be on the lookout for more moves from the veteran publishers… Last week came the announcement that Evan Lamberg is to take the helm at Universal Music Publishing Group in North America. Insiders share that Lamberg was gunning hard for the position, though he probably wasn’t the first choice, as it was no secret that the top Universal brass took their time after numerous meetings with other suitors… And on the digital side, J Scavo ankles his global marketing position at the seemingly more stable Disney Music Group for the revolving door position that is digital at Warner Bros. Records. The digital executive bailed for the rival label, a hop-skip and a jump across the river in Burbank, after barely 18 months working for the Mouse. It was Scavo, previously the GM at MySpace Records and a vocal champion for non-traditional label models, who with his decision to suddenly resign to work at Disney, provided the spark for News Corp. to initiate moves to lay off the label’s staff and shutter it as an ongoing operation. Robbie Snow has been named the new Head of Global Marketing for Disney’s music operations under Hollywood Records… And Brett Greenberg has joined Crush Management as VP of radio promotions.

Bits & Pieces: BMG Rights Management buy Bug Music, EMI auction slows & EU extends life of music copyright

Following reports last week that Spectrum Equity and Crossroads Media, owners of Bug Music, were accepting second round bids for the publishing company, came the news yesterday that KKR-backed BMG Rights Management has snapped up the independent pubco, for a price that is being rumored at $300 million. The acquisition, which is expected to be closed by October, will essentially double the catalog size of the KKR and Bertelsmann joint venture. Bug Music CEO John Rudolph is also reportedly suing the owners of the pubco, over a 2% equity stake in the company which he was promised… Of course, BMG RM is also currently bidding in the EMI auction, with its sights set on the publishing arm. An article in This Is Money over the weekend stated that bidders in the EMI auction are frustrated by Citigroup‘s slow-pace in the process, and believe it is in an effort to give private equity parties enough time to raise cash to remain as contenders given the troubled financial markets… Good news for those vying for EMI, as well as many other record companies, is the decision by the European Union to extend the copyright term on sound recordings from 50 to 70 years. Many point to the mass of popular recordings from the 1960′s by numerous British artists including the Beatles, the Rolling Stones and many others that would begin to come up on term within only a few years, as being a primary reason behind the ruling. While the announcement was made as being a major boon to artists, in protecting works, others see the move as furthering what has been a negative situation for the many older artists and performers in the new digital age. The storyline also parallels that of the current copyright termination issue going on in the U.S., though there is no such reversion clause in the European law.

Bits & Pieces: Just when you thought it was safe to buy EMI, Legal-Eagle Don Henley & Bug Music still for sale

Guy Hands; Looking for answers

Another potential wrinkle appeared in the current auction of EMI this week, with the reappearance of Guy Hands, who is taking legal action to recover documents explaining the basis for Citigroup‘s takeover of the music company in February of this year. According to initial reports, Citi tapped PricewaterhouseCoopers to handle administration of the takeover process, and Terra Firma is now taking action against both parties after previous unsuccessful attempts to acquire a satisfactory explanation. After Hand’s courtroom defeat at the end of 2010, it was believed that the EMI takeover would not come until closer to summer of this year, given the debt-payment schedule, however the bank took action in February, after rumors in January that they were already shopping for buyers. So far Citi’s response to the initial sentiment that this new twist could cause a serious problem for their auction of the music group, was to indemnify all bidders currently pursuing EMI, according to the Financial Times. Some insiders are wondering if this isn’t just more posturing from Hands in an attempt to strike a blow against his former lender, particularly after recent widespread speculation that EMI could fetch a much higher price than originally believed. Considering the scuttlebutt earlier this year was that the abrupt takeover came as a result of threats from his own investors, one in particular, the answer might be yes… This latest development surrounding the EMI auction, comes after talk that the looming copyright termination battle royale, is also effecting the bidding process, though most observers share that neither issue will likely have crippling outcomes… Meanwhile, continuing his rounds with the press as artist-spokesman for the copyright termination topic,  Don Henley speaks to Rolling Stone about the copyright law, options that artists have and how the record companies are not going to take it lying down… And according to the New York Post, independent music pubco Bug Music is taking second-round bids from interested parties, including KKR-backed BMG Rights Management, Ole Music and Imagen among others…

Bits & Pieces: Citi Receives 10+ bids for EMI, KOL Cancel Tour to Tune of $15million, Turntable.fm & more…

Worth more than Warner Music?

The first round bids for EMI are in, with multiple reports pointing to more than 10 offers received for either the whole or individual recorded music and publishing arms of EMI Group, from interested parties including Sony, Universal, Warner Music, BMG Rights Management and a host of private equity groups. At least one analysis this week claimed that Citigroup could possibly fetch more than $4 billion for the company based on a similar multiple used in the recent Warner acquisition. An article in FT.com yesterday claims that the current tendered bids range from $3 – $4b, and that between four and six of the submitted offers were for the entire music group. Citi is expected to respond to the opening bidders this week…  While less humorous than last summer’s Kings of Leon bird droppings incident, the band’s cancelation of the remainder of their current U.S. tour dates following an abrupt termination of a set in Dallas last week, may prove much more damaging. Rollingstone.com takes a look at other recent tour cancelations with somewhat dubious explanations, and according to reports, the KOL cancellation may cost policy holder, Loyds of London, as much as $15 million in payouts to promoters and others affected… The much talked about Turntable.fm has secured a $7.5 million financing round led by Union Square Ventures, which has some wondering if the startup will next seek licensing agreements with the record labels and music publishers. Lady Gaga and Kanye West are also reportedly among those who contributed to the funding… And The Shins are following fellow former Sub Pop label mates Band of Horse, in moving from the venerable indie to a new imprint-label deal with Columbia Records for their next release.

Bits & Pieces: BMG Bids, Warner to Unload Weight & New Motown/Island Def Jam Takes Shape

Transitions to IDJ Group

The New York Post reported this week that KKR and Bertelsmann-backed BMG Rights Management, as expected, submitted their bid for EMI last Friday, while the other favorite Warner Music is believed to be submitting this week ahead of a July 28 deadline. The Post also reported that new Warner owner, Access Industries, is preparing for cutbacks in the WMG workforce up to 5%, primarily outside of the U.S. – reductions that are believed to be directly related to a possible EMI acquisition. Others are noting the dramatic uphill climb the new Warner Music owners face in an industry that reported growth of just 1.6% this year, the first time in 7 years, with album sales still in decline. Is a successful EMI merger the only way for Len Blavatnik to avoid ending up as the next Guy Hands?… Meanwhile, as first reported by The Wrap, Universal Music is preparing to install Universal Music Publishing Group executive Ethiopia Habtemariam as head of Motown, as the label transitions into the Island Def Jam Group. At least one veteran IDJ A&R executive is said to be heading back to Universal in the new Motown/IDJ group after previously departing under CEO L.A. Reid, who is now chairman of Epic Records.

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