EMI, the record label that signed such well known acts as the Beatles, Pink Floyd, Kylie Minogue, Kate Bush, Coldplay and Tinie Tempah, is likely to be sold to a Russian-born billionaire and businessman named Len Blavatnik. The sale will mark the end of an era for UK music. EMI is the last major domestic music label and its record of signing homegrown talent has made it the unofficial home of British pop.
EMI’s recording arm and its music publishing division was due to be sold to Universal, however they pulled out of the bidding process. This left the wealthy in pole position to buy the bulk of the business.
Blavatnik is the New York-based founder and owner of Access Industries, the international chemicals conglomerate which also bought EMI’s rival Warner Music for £2bn in May this year. He is expected to pay around $1.5bn for EMI’s recorded music division, according to industry sources.
Its publishing arm, which owns the rights to a catalogue of more than a million songs by artists including Kanye West, Arctic Monkeys and Jay-Z, is likely to be sold to the German media group Bertelsmann and KKR, an American private equity company.
The deal will create a third major global music label to rival Universal and Sony, and is also likely to mean the end of the EMI brand in America, where the label is expected to be phased out, although the name will be retained in European markets.
The final details of the sale are still being sorted, but music industry sources say official confirmation is likely to come at the end of the week. As a result It will be a stronger record company after the sale, but it may also make a lot of people unemployed – The new owner is expected to trim the combined group’s workforce after the sale is complete, and hundreds of jobs are expected to go as a result.
since the arrival of Napster, iTunes, the digital revolution and readily acccessible online content, Pressure has been increasing on record labels and This has transformed the economics of the music industry and has forced major labels to seek merger deals in order to survive. Having said that there are Plenty of companies have benefited from overseas expansion and have done well as a result.
Some Senior industry figures are bemoaning the fact that another national industry is set to fall into foreign hands. Jazz Summers, a rock music veteran who was manager of British indie band the Verve, said: “It’s a tradition that I’ll be sad to see end….