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Universal Buys BMG Publishing

by Paul Cashmere

 

September 6 2006

 

Universal Music Group is set to become the world’s biggest publishing company following an agreement to purchase BMG Music Publishing for $2 billion in cash.

 

The move brings the works of Maroon5, Mariah Carey and Nelly under the Universal umbrella.

 

Once the BMG catalogue is absorbed into Universal, Universal Music Publishing Group will become the largest music publisher in the world ahead of Warner-Chappell.

 

Bertlesmann, the parent company Sony-BMG and BMG Music Publishing, announced the sale of the publishing business in May to help raise around $6 billion for other interests.

 

An official announcement about the sale from both parties is expected later this week.

 

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Universal to buy BMG Publishing

Source: Music Week

 

 

Universal Music Group has agreed to buy BMG Music Publishing for €1.63bn (£1.1bn).

 

The deal has been approved by the management and supervisory board of UMG parent company Vivendi and is subject to regulatory approvals of competition authorities in the countries concerned.

 

Subject to these approvals, BMG Music Publishing will be integrated into UMG.

 

UMG chairman and CEO Doug Morris says, “This is an historic acquisition which will further diversify and expend our portfolio of music assets into such key areas as production music library, classical and Christian music.

 

“As a result, UMG will not only be even better positioned to fully capitalise on the many new and exciting opportunities in the current marketplace, but be able to better serve our artists, songwriters and business partners.â€

 

Vivendi CEO and chairman Jean-Bernard Levy adds, "The acquisition of BMG Music Publishing is a unique opportunity to grow our music publishing business and enhance the value of Universal Music Group at a time when the music market is improving, supported by technological innovations and digital sales."

 

 

 

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