Image copyright Getty Images Image caption Alicia Keys's songs are published by EMI

Sony is buying a controlling stake in EMI Music Publishing, giving it control over two million songs by artists from Queen and Carole King to Alicia Keys and Pharrell Williams.

The $2.3bn (£1.7bn) deal will make Sony the world's biggest music publisher.

Sony's publishing business already includes 2.3 million tracks, including the Beatles catalogue.

Sony chief executive Kenichiro Yoshida said streaming services had led to a "resurgence" in the music business.

"We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry," he said.

"In the entertainment space, we are focusing on building a strong IP [intellectual property] portfolio, and I believe this acquisition will be a particularly significant milestone for our long-term growth."

Sony is raising its stake in EMI Music Publishing from 30% to 90% by buying the stake held by Mubadala Investment Company, Abu Dhabi's sovereign wealth fund. The Jackson Estate holds the other 10% stake.

Sony's purchase of EMI Music Publishing is the biggest move so far by Mr Yoshida, who took over the reins from former chief executive Kazuo Hirai earlier this year.

Mr Yoshida and Mr Hirai were together instrumental in reviving Sony's fortunes by selling its struggling PC business and launching the successful PlayStation 4 games console.

Image copyright Getty Images Image caption Sony said its PlayStation 4 console had sold 79 million units

Sony also unveiled its business strategy and financial targets for the next three years on Tuesday.

The Japanese giant said it would continue to focus on electronics, entertainment and financial services.

The hardware business - which includes home entertainment products, mobile communications and imaging and camera products - is expected to generate the most cash in the coming years.

In April, Sony reported net profit of 380bn yen for last year, a seven-fold increase on 2016.

Almost all of its divisions saw an improved performance, but sales in the PlayStation unit jumped almost 300%.</s>Sony- Headquartered in Tokyo and based in New Delhi in India, Sony is among the top choices for job aspirants across India. (Reuters)

Japanese entertainment giant Sony today announced a deal to acquire the music publishing firm and record label EMI for a price of around USD 1.9 billion.

Sony signed a deal with Abu Dhabi-based investment firm Mubadala to buy its 60 percent holding in EMI, giving the Japanese firm an indirect stake of approximately 90 percent, Sony said in a statement.

"We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number-one position in the music publishing industry," Sony boss Kenichiro Yoshida said in a statement.

He said the music business had "enjoyed a resurgence in the past couple of years" driven by subscription-based streaming services.

EMI is the second-largest music publishing company by revenue and either owns or holds the rights to 2.1 million pieces of music.

It either owns or administers some two million songs, including classics by the likes of Queen, Sam Smith, Pharrell Williams and Drake.

As for Sony, it already owns 2.3 million copyrights, including the Beatles catalogue.

The deal values EMI at USD 4.75 billion, the Sony statement said, adding that "the closing of the transaction is subject to certain closing conditions, including regulatory approvals." Sony will later today unveil its latest strategic plan under new CEO Yoshida, expecting to focus more on content than hardware.

The electronics and entertainment behemoth last month reported record annual profits worth USD 4.5 billion, a roaring recovery supported by better sales across the board and helped by box office blockbusters like its Jumanji reboot.

Those figures were seen as a fitting send-off for Kazuo Hirai, who recently stepped down as the firm's chief executive after spending the past six years pulling the firm out of deep financial troubles.

Hirai led an aggressive restructuring drive at Sony, terminating thousands of jobs while selling business units and assets.

Investors appeared dubious about the acquisition however, with Sony stock down around 0.6 percent in the first few minutes of trade, underperforming the wider Japanese market which was flat.</s>TOKYO (dpa-AFX) - Mubadala Investment Company and Sony Corp. (SON.L, SNE) said that they have signed a legally binding memorandum of understanding for the sale of the Mubadala consortium's approximately 60% equity interest in EMI Music Publishing to Sony Corporation of America, a wholly owned subsidiary of Sony, based on an enterprise value of $4.75 billion.



As a result of the transaction, Sony will indirectly own about 90% of the equity interest in EMI Music Publishing and it will become a consolidated subsidiary of Sony. The closing of the transaction is subject to certain closing conditions, including regulatory approvals.



The original transaction and the investor consortium that partnered with Sony and the Michael Jackson Estate to acquire EMI Music Publishing from a wholly-owned subsidiary of Citigroup Inc. were sourced and assembled by Mubadala Capital's private equity business, which has controlled and managed EMI Music Publishing on behalf of Mubadala and other third-party investors since 2012.



The total cash consideration Sony expects to pay to consolidate EMI Music Publishing is approximately $2.3 billion. Sony will assume EMI Music Publishing's existing gross indebtedness, which was approximately $1.359 billion as of March 31, 2018. 



Upon closing of the transaction, Sony expects to record in operating income a non-cash step-up gain of approximately 100 billion yen for the equity interest in EMI Music Publishing it currently owns. The step-up gain and the consolidation of EMI Music Publishing has not been included in Sony's forecast of consolidated financial results for the fiscal year ending March 31, 2019, and Sony is currently assessing the impact of this step-up gain and the consolidation of EMI Music Publishing on its consolidated financial results for the fiscal year ending March 31, 2019.



EMI Music Publishing owns or administers over two million songs that include classics by Queen, Carole King and the Motown catalog along with contemporary songs from Kanye West, Alicia Keys, Drake, Sam Smith, Pink, Pharrell Williams, Calvin Harris, Fetty Wap, Hozier and Sia.



Together with Sony's 100%-owned music publishing company, Sony/ATV, and Sony's 100%-owned music company, and Sony Music Entertainment (Japan) Inc., the Sony Group collectively owns more than 2.3 million copyrights, featuring the Beatles, contemporary superstars and the Leiber Stoller catalog.



EMI Music Publishing generated revenue of $663 million, adjusted operating income of $181 million, and adjusted EBITDA of $249 million for the fiscal year ended March 31, 2018.



Copyright RTT News/dpa-AFX</s>The Beatles, one of thousands of bands and artists whose publishing falls under Sony/ATV's umbrella. Getty Images
• Sony Corporation announced on Tuesday that it has signed a deal to acquire a 60% stake in EMI Music publishing, raising Sony's stake in EMI to around 90%.
• Sony expects to pay around $2.3 billion to consolidate EMI Music Publishing.
• In 2012, Sony/ATV CEO Bandier led an effort to claim 40% of EMI in a joint venture with the estate of Michael Jackson, for a deal that was valued at $2.2 billion.

Sony Corporation announced today that is has signed a deal to acquire Mubadala Investment Company's 60% equity interest in EMI Music Publishing. The deal will raise Sony's stake in EMI to around 90%, based on an enterprise value of $4.75 billion.

As a result of the transaction, Sony will indirectly own approximately 90% of the equity interest in EMI Music Publishing and it will become a consolidated subsidiary of Sony. The closing of the transaction is subject to certain closing conditions, including regulatory approvals.

While the final purchase price to be paid by Sony for all of Mubadala's equity interest in EMI Music Publishing is subject to customary closing adjustments, the total cash consideration Sony expects to pay to consolidate EMI Music Publishing is approximately $2.3 billion.

Kenichiro Yoshida, President and CEO, Sony Corporation said: "We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry. I would also like to convey my gratitude to Mubadala, our equity partner in EMI Music Publishing, for sharing our long-term perspective on the potential success of music publishing and their support as we grew the business. The music business has enjoyed a resurgence over the past couple of years, driven largely by the rise of paid subscription-based streaming services. In the entertainment space, we are focusing on building a strong IP portfolio, and I believe this acquisition will be a particularly significant milestone for our long-term growth."

The purchase staves off what could have been a contentious bidding process, should Mudabala have opened up its investment share to other potential buyers. According to sources, Warner Music Group owner Len Blavatnik was hot on the property, as were other music companies. But with Sony already owning a significant portion of EMI, its ideal situation was to keep intact as much of Sony/ATV as possible — preferably, all of it. Ultimately, says an insider, the publishing company is but a small "kernel" of Sony's overall business, though it is a growing sector. Sony/ATV in particular has seen growth of 100% in the last five years under chairman Marty Bandier.

The deadline for Mubadala to accept bids was the end of May, with the month of June earmarked for a review.

In 2012, Bandier led the effort to acquire EMI's publishing unit — bringing in 1.3 million copyrights for songs by Carole King, Norah Jones, Motown classics, and standards like "Somewhere Over the Rainbow" — in a deal valued at $2.2 billion. At the time, Sony/ATV operated as a joint venture with the Michael Jackson estate (in January 2016, Sony/ATV exercised a buy-sell option to acquire the 50% it didn't own — the price tag: $750 million) and, together, the two entities claimed 40% of EMI Music Publishing, with Sony/ATV taking a fee of 15% of NPS (Net Publisher Share) to administer the EMI copyrights. Holding the other 60% was a consortium of investors including the Jackson estate (with 10% ownership), Mubadala, Jynwel Capital, Blackstone Group's GSO Capital Partners and David Geffen.

Since that acquisition, Sony/ATV has been the top publisher in each quarter except one. The company is the world's largest music publisher, with songs by The Beatles, Bob Dylan, Marvin Gaye, Michael Jackson, Leonard Cohen, Alicia Keys, Lady Gaga, Carole King, Kraftwerk, Joni Mitchell, Willie Nelson, Queen, The Rolling Stones, Sting, Ed Sheeran, Taylor Swift, Kanye West, Hank Williams and Stevie Wonder among the thousands in its repertoire.

Hani Barhoush, Head of Mubadala Capital, said: "EMI has been a successful investment for Mubadala and I would like to personally extend my appreciation to the leadership at Sony and Sony/ATV, who have been instrumental in administering the EMI catalog as well as shaping the music landscape on a global basis. They have been tremendous partners to us."

Adib Mattar, Head of Private Equity for Mubadala Capital and Chairman of EMI Music Publishing, said: "EMI Music Publishing represents one of the world's largest and most diverse catalog of copyrights with iconic songs that span every decade over the last one hundred years. Writers and artists only stand to benefit under consolidated ownership and should feel proud to be part of the Sony family. The sale of our consortium's interest in EMI Music Publishing represents a milestone for Mubadala and our private equity business."</s>Sony Corp is buying EMI Music Publishing, getting its hands on a catalog of 2.1 million songs from Beyonce, Carole King and other artists as it embarks on a new growth plan built on content and services.

The Japanese company would buy about 60 per cent equity interest from a consortium led by from Mubadala Investment Co for about $US2 billion ($2.6 billion), Sony said in a statement. The Tokyo-based company already owns almost 40 per cent of EMI, operates the business and had been in talks to buy the library for the past few months.

EMI's extensive catalogue will solidify Sony's position as the largest music publisher amid a boom in streaming services that has fuelled valuations for music copyrights. The transaction is the first major strategic move by Kenichiro Yoshida, who took over as chief executive in April. He is set to unveil a three-year plan later on Tuesday that embraces Sony's growing reliance on income from gaming subscriptions and entertainment.

"We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry," Mr Yoshida said in the statement.

Mubadala said the deal was based on an enterprise value of $US4.75 billion, exceeding its target of getting at least $US4 billion for EMI. That's double what the Sony-led group, which also includes billionaire David Geffen, paid for the business six years ago. That makes the sale the largest music-industry transaction since the last time EMI changed hands.</s>Sony (snejf) is buying EMI Music Publishing, getting its hands on a catalog of 2.1 million songs from Beyonce, Carole King and other artists as it embarks on a new growth plan built on content and services.

The Japanese company will buy about 60 percent equity interest from a consortium led by from Mubadala Investment Co. for about $2 billion, Sony said in a statement. The Tokyo-based company already owns almost 40 percent of EMI, operates the business and had been in talks to buy the library for the past few months.

EMI’s extensive catalog will solidify Sony’s position as the largest music publisher amid a boom in streaming services that has fueled valuations for music copyrights. The transaction is the first major strategic move by Kenichiro Yoshida, who took over as chief executive officer in April. He also unveiled a three-year plan Tuesday that embraces Sony’s growing reliance on income from gaming subscriptions and entertainment.

“We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry,” Yoshida said in the statement.

Sony is paying $1.9 billion for the 60 percent equity stake from the consortium. With the cost of warrants for stock and management incentives, the price is $2.3 billion, a spokesman for the company said.

“This is certainly on the high side of what we previously expected,” said David Dai, an analyst at Sanford C. Bernstein & Co. in Hong Kong. “It is a high price to pay for the strategy to shift from hardware to content.”

In its midyear plan, Sony predicted profit growth across most divisions over the next three years, but provided a mostly conservative outlook that weighed on shares. For example, annual operating profit in the game and networks is projected to be 130 to 170 billion by March 2021, compared with the outlook for 190 billion in the current year. Sony shares fell as much as 3.7 percent, the biggest intraday decline since May 1 following the earnings announcement.

Mubadala said the EMI deal is based on an enterprise value of $4.75 billion, exceeding its target of getting at least $4 billion. That’s double what the Sony-led group, which also includes billionaire David Geffen, paid for the business six years ago. That makes the sale the largest music-industry transaction since the last time EMI changed hands.

Music publishing has long offered owners a steady source of cash, in contrast with the more cyclical recorded music business, which is dependent on hits and retail sales and has historically gone up and down depending on the success of new releases in a given quarter.

Growing paid streaming services from Spotify Ltd. and Apple Inc. have boosted music-industry sales for three years in a row and enticed investors to splurge on catalogs. Labels own the recordings of songs, while publishers own the songs as originally written.

Last month, Sony disclosed that it will record a gain of almost $1 billion from its stake in Spotify following the streaming service’s public debut.</s>Japanese entertainment giant Sony on Tuesday unveiled a $1.9-billion deal to buy industry titan EMI Music Publishing, which has the rights to songs by the likes of Queen and Pharrell Williams.

The deal adds a catalogue of more than two million songs — including some of the greatest hits from the 20th century — to Sony’s already huge repertoire.

The agreement is Sony’s first major deal under new CEO Kenichiro Yoshida, who noted the music business has enjoyed a “resurgence” in recent years due to streaming services provided by companies such as Spotify and Apple.

With this purchase, Sony “is becoming one of the biggest music publishing companies, both in name and reality”, Yoshida told reporters.

“We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry,” Yoshida said in an earlier statement.

“I believe this acquisition will be a particularly significant milestone for our long-term growth,” added Yoshira, who took the Sony helm last month.

Sony said it had signed a deal with Abu Dhabi-based investment firm Mubadala to buy its 60 percent holding, giving the Japanese firm a stake of about 90 percent.

The agreement values EMI Music Publishing at $4.75 billion, the Sony statement said, adding that “the closing of the transaction is subject to certain closing conditions, including regulatory approvals”.

Yoshida also Tuesday unveiled Sony’s latest strategic plan, which aims to bolster its content business — pursuing the direction his predecessor Kazuo Hirai had taken to revitalise one of Japan’s best-known firms.

“We are a technology firm, but the technology means not only electronics but also entertainment and content-creation” in today’s world, Yoshida said.

Sony will continue to build up its content services — as shown by Tuesday’s deal — and also invest heavily in cutting-edge technologies including image sensors, he said.

“This is part of Sony’s strategy under Yoshida to beef up its entertainment businesses,” noted Hideki Yasuda, an analyst at Ace Research Institute in Tokyo.

“In the music business, copyrights are crucial. So the deal is meaningful and its price appears practical and reasonable,” the analyst told AFP, adding that success would depend on the quality of the content Sony creates in the future.

The electronics and entertainment behemoth last month reported record annual profits of $4.5 billion, a roaring recovery supported by better sales across the board and helped by box office blockbusters like its Jumanji reboot.

Those figures were seen as a fitting send-off for Hirai, who recently stepped down as the firm’s chief executive after spending the past six years pulling the firm out of deep financial trouble.

Hirai led an aggressive restructuring drive at Sony, cutting thousands of jobs while selling business units and assets.

EMI is the second-largest music publishing company by revenue and either owns or administers some two million songs, including classics by the likes of Queen, Sam Smith and Pharrell Williams.

As for Sony, it already owns 2.3 million copyrights including the Beatles catalogue, as well as being a massive player in IT, communications, film and gaming.

EMI holds a “comprehensive and diverse collection of copyrights for music and lyrics” from a “wide variety of iconic and popular songwriters”, the statement said.

Judy Garland’s “Over the Rainbow” continues to be a top-10 money-spinner even today, more than 75 years after its initial release, it added.

Current songwriters under its banner include Kanye West, Alicia Keys, Drake, Pink, Fetty Wap and Hozier.

Investors, however, appeared dubious about the acquisition and the new strategic plan, with Sony stock closing down nearly two percent, underperforming the wider market which was down 0.42 percent.</s>Sony has announced a US$1.9bn (£1.4bn) deal to acquire EMI Music Publishing, one of the world’s largest music publishing companies with rights to songs by the likes of Queen and Pharrell Williams.



The deal adds a catalogue of more than two million songs – including some of the greatest hits from the first half of the 20th century – to Sony’s already huge holdings.

The agreement is Sony’s first major deal under new CEO Kenichiro Yoshida, who noted that the music business has enjoyed a “resurgence” in recent years due to streaming services provided by companies such as Spotify and Apple.

With this purchase, Sony “is becoming one of the biggest music publishing companies, both in name and reality”, Yoshida said.

“We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry,” Yoshida said in an earlier statement.

“I believe this acquisition will be a particularly significant milestone for our long-term growth,” added Yoshira, who took the helm of Sony last month.

Sony said it had signed a deal with Abu Dhabi-based investment firm Mubadala to buy its 60% holding, giving the Japanese firm an indirect stake of approximately 90%.

The agreement values EMI Music Publishing at $4.75bn, the Sony statement said, adding that “the closing of the transaction is subject to certain closing conditions, including regulatory approvals”.

Yoshida also unveiled Sony’s latest strategic plan, which aims to pursue the direction his predecessor Kazuo Hirai had sought to revitalise one of Japan’s well-known firms.

“We are a technology firm, but the technology means not only electronics but also entertainment and content-creation” in today’s world, Yoshida said.

Sony will continue to strengthen its content services – as shown by Tuesday’s deal – and also invest heavily in cutting-edge technologies including image sensors, he said.

The company in April reported record annual profits of $4.5bn, a roaring recovery supported by better sales across the board and helped by box office blockbusters like its Jumanji reboot.

Kazuo Hirai recently stepped down as the firm’s chief executive after spending the past six years pulling it out of deep financial troubles. Hirai led an aggressive restructuring drive at Sony, cutting thousands of jobs while selling business units and assets.

EMI is the second-largest music publishing company by revenue and either owns or holds the rights to 2.1m pieces of music. Sony already owns 2.3m copyrights.</s>The Japanese technology and content giant has said it will buy control of EMI for $2.3 billion, making Sony the biggest music publisher in the world, reports Reuters. The acquisition will give Sony a music catalog of over 2 million songs from artists including Kanye West, Sam Smith, and Sia. Sony already currently owns about 30% of EMI. Its $2.3 billion deal will give the company control of another 60%, bringing its total control of EMI to 90%. The Sony/EMI deal is being struck at a time of resorting profits for the music industry thanks to streaming services. That follows almost a decade and a half of declining music sales with the advent of MP3 download services.</s>Sony is spending more than $2 billion to take control of a major music publishing company that owns the rights to songs by artists like Kanye West and Alicia Keys.

Sony said in a statement Tuesday that it would buy a 60% stake in EMI Music Publishing from a group of investors led by Mubadala, one of the United Arab Emirates’ sovereign wealth funds.

The Japanese company already held a minority stake in EMI, whose catalog contains more than 2 million songs from music legends including Frank Sinatra and David Bowie. Its library includes decades-old classics like “Over the Rainbow” and more recent hits such as “Happy” by Pharrell Williams.

The new deal will leave Sony owning about 90% of EMI, cementing its position as the world’s biggest music publisher. It said it will pay $2.3 billion in cash to bring EMI under its umbrella.

Related: Inside the war between Spotify and Apple

“The music business has enjoyed a resurgence over the past couple of years, driven largely by the rise of paid subscription-based streaming services,” Sony CEO Kenichiro Yoshida said in a statement.

He added that Sony is trying to get hold of more intellectual property in the entertainment industry, describing the EMI deal as a “significant milestone.”

Sony has stepped up its investments in content in recent years as it seeks to shift away from making hardware like TVs and stereos.

In 2016, it took control of Sony/ATV, a music publishing joint venture, by buying a 50% stake from Michael Jackson’s estate.

Related: How will Apple create its media empire

Bringing in the EMI catalog will increase Sony’s music library to about 4.5 million songs.

But David Dai, an analyst at investment bank Bernstein, said Tuesday that Sony was shelling out a lot for EMI, based on similar deals in the past.

“It is a high price to pay for the strategy to shift from hardware to content,” Dai wrote in a note to clients.

Sony also owns a small stake in music-streaming platform Spotify, which went public in New York last month.

Last week, Sony agreed to pay $185 million to buy a stake in Peanuts, the brand famous for the Charlie Brown and Snoopy characters.
Sony agrees to a $2.3 billion deal where they will buy a controlling interest in EMI Music Publishing. The deal will mean that Sony would indirectly own 90% of the music publisher and its two million songs.