Investments · Music publishing
Sony takes full control of EMI Music Publishing for about $2.3 billion
- Investor
- Sony (Tokyo)
- In
- EMI Music Publishing, New York, New York
- Value
- About $2.3B for 60% (enterprise value $4.75B)
- Status
- Completed on November 14, 2018.
- Date
- 2018-05-22
Sony agreed to buy the roughly 60% of EMI Music Publishing held by a consortium led by Mubadala Investment Company for about $2.3 billion, based on an enterprise value of $4.75 billion. EMI Music Publishing is a global music publisher, and the purchase made it a wholly owned Sony subsidiary.
Why it matters
Song rights earn steady income from streaming, and full ownership of EMI made Sony one of the largest holders of music publishing rights.
From partner to owner
Sony had held about 40% of EMI before the deal. The purchase was made by Sony Corporation of America and signed as a definitive agreement on June 29, 2018. The European Commission cleared it on October 26, 2018, and it closed on November 14.
Debt and accounting gain
Sony also took on about $1.3 billion of EMI's interest-bearing debt and repaid $0.96 billion of it at once from its own cash. It expected about ¥105 billion of extra operating income in its music segment, mostly a non-cash gain from revaluing its existing 40% stake.
Sources
Kakehashi M&A News home
