Universal Music Group
Early history
Universal Music was once the music company attached to film studio Universal Pictures. Its origins go back to the formation of the American branch of Decca Records in 1934.[1] The Decca Corporation of England spun American Decca off in 1939.[2] MCA Inc. bought American Decca in 1962. The present organization was formed when its parent company Seagram purchased PolyGram and merged it with Universal Music Group in 1998. However, the name first appeared in 1996 when MCA Music Entertainment Group was renamed Universal Music Group. The PolyGram acquisition included Deutsche Grammophon which traces its ancestry to Berliner Gramophone making Deutsche Grammophon UMG's oldest unit. UMG's Canadian unit traces its ancestry to a Berliner Gramophone breakaway firm the Compo Company.
Acquisition by Vivendi
With the 2004 acquisition of Universal Studios by General Electric and merging with GE's NBC, Universal Music Group was cast under separate management from the eponymous film studio. This is the second time a music company has done so, the first being Time Warner and Warner Music Group completely separating from each other. In February 2006, the label became 100% owned by French media conglomerate Vivendi SA when Vivendi purchased the last 20% from Matsushita, the group's sole owner from 1990 to 1995 and co-owner from 1995 to 2006. On June 25, 2007, Vivendi completed its €1.63 billion ($2.4 billion) purchase of BMG Music Publishing, after receiving European Union regulatory approval, having announced the acquisition on September 6, 2006.[3][4]
2010s and EMI purchase
Doug Morris stepped down from his position as CEO on January 1, 2011. Former Chairman/CEO of Universal Music International Lucian Grainge was promoted to CEO of the company. Grainge later replaced him as chairman on March 9, 2011.[5] Morris became the next chairman of Sony Music Entertainment on July 1, 2011.[6] With Grainge's appointment as CEO at UMG, Max Hole was promoted to COO of UMGI, effective July 1, 2010.[7] Starting in 2011 UMG's Interscope-Geffen-A&M Records will be signing contestants from American Idol/Idol series. On January 2011, UMG announced it was donating 200,000 master recordings from the 1920s to 1940s to the Library of Congress for preservation.[8]
In March 2011, Barry Weiss became Chairman & CEO of The Island Def Jam Music Group & Universal Republic Records.[9] Both companies are in the process of restructuring under Weiss.[10] In December 2011, David Foster was named Chairman of Verve Music Group.
On 12 November 2011, it was announced that EMI would sell its recorded music operations to Universal Music Group for £1.2 billion ($1.9 billion) and its music publishing operations to a Sony-led consortium for $2.2 billion.[11] Among the other companies that had competed for the recorded music business was Warner Music Group which was reported to have made a $2 billion bid.[12] However, IMPALA has said that it would fight the merger.[13] In March 2012, the European Union opened an investigation into Universal's purchase of EMI's recorded music division[14] and has asked rivals and consumer groups whether the deal will result in higher prices and shut out competitors.[15] Coincidentally, UMG sister company StudioCanal has owned the EMI Films library for several years now.
On 21 September 2012, the sale of EMI to UMG was approved in both Europe and the United States by the European Commission and Federal Trade Commission respectively. However, the European Commission approved the deal only under the condition that the merged company divest one third of its total operations to other companies with "a proven track record in the music industry". UMG divested Mute Records, Parlophone, Roxy Recordings, MPS Records, Cooperative Music, Now That's What I Call Music!, Jazzland, Universal Greece, Sanctuary Records, Chrysalis Records, EMI Classics, Virgin Classics and EMI's regional labels across Europe in order to comply with this condition. The Beatles' recorded music library was allowed to remain with UMG despite being considered part of Parlophone and is now managed by UMG's reorganized Capitol Music Group worldwide.[16][17] Robbie Williams, who had previously recorded for Chrysalis, also had his catalogue remain at Universal.
2012-present: After EMI acquisition
Universal Music Group completed their acquisition of EMI on September 28, 2012.[18]
In November 2012, Steve Barnett was appointed Chairman & CEO of Capitol Music Group. He formerly served as COO of Columbia Records.[19]
In compliance the conditions of the European Commission after purchase of EMI, Universal Music Group sold a German-based music rights company BMG the Mute catalogue on December 22, 2012.[20] Two months later, BMG acquired Sanctuary Records for close to 50 million euros.[21]
On February 8, 2013, UMG sold to Warner Music Group the Parlophone Music Group consisting of Parlophone Records, Chrysalis Records, EMI Classics, Virgin Classics and EMI Records' Belgian, Czech, Danish, French, Norwegian, Portuguese, Spanish, Slovak and Swedish divisions, to a value of $765 million (£487 million).[22][23]
Play It Again Sam has acquired V2 Records and its Co-Operative Music distribution for $500,000 in March 2013.[24] Sony Music Entertainment has acquired Universal's share in Now That's What I Call Music for $10 million.
With EMI's absorption into Universal Music complete, its British operations will consist of five label units: Island, Polydor, Decca, Virgin EMI and Capitol.[25]
On April 2, 2013, the gospel music divisions of Motown Records and EMI merged to form a new label called Motown Gospel.[26]
On May 2013, Japanese company SoftBank offered 8.5 billion US dollars to Vivendi for the acquisition of UMG, but Vivendi rejected it.[27]
Universal Music was once the music company attached to film studio Universal Pictures. Its origins go back to the formation of the American branch of Decca Records in 1934.[1] The Decca Corporation of England spun American Decca off in 1939.[2] MCA Inc. bought American Decca in 1962. The present organization was formed when its parent company Seagram purchased PolyGram and merged it with Universal Music Group in 1998. However, the name first appeared in 1996 when MCA Music Entertainment Group was renamed Universal Music Group. The PolyGram acquisition included Deutsche Grammophon which traces its ancestry to Berliner Gramophone making Deutsche Grammophon UMG's oldest unit. UMG's Canadian unit traces its ancestry to a Berliner Gramophone breakaway firm the Compo Company.
Acquisition by Vivendi
With the 2004 acquisition of Universal Studios by General Electric and merging with GE's NBC, Universal Music Group was cast under separate management from the eponymous film studio. This is the second time a music company has done so, the first being Time Warner and Warner Music Group completely separating from each other. In February 2006, the label became 100% owned by French media conglomerate Vivendi SA when Vivendi purchased the last 20% from Matsushita, the group's sole owner from 1990 to 1995 and co-owner from 1995 to 2006. On June 25, 2007, Vivendi completed its €1.63 billion ($2.4 billion) purchase of BMG Music Publishing, after receiving European Union regulatory approval, having announced the acquisition on September 6, 2006.[3][4]
2010s and EMI purchase
Doug Morris stepped down from his position as CEO on January 1, 2011. Former Chairman/CEO of Universal Music International Lucian Grainge was promoted to CEO of the company. Grainge later replaced him as chairman on March 9, 2011.[5] Morris became the next chairman of Sony Music Entertainment on July 1, 2011.[6] With Grainge's appointment as CEO at UMG, Max Hole was promoted to COO of UMGI, effective July 1, 2010.[7] Starting in 2011 UMG's Interscope-Geffen-A&M Records will be signing contestants from American Idol/Idol series. On January 2011, UMG announced it was donating 200,000 master recordings from the 1920s to 1940s to the Library of Congress for preservation.[8]
In March 2011, Barry Weiss became Chairman & CEO of The Island Def Jam Music Group & Universal Republic Records.[9] Both companies are in the process of restructuring under Weiss.[10] In December 2011, David Foster was named Chairman of Verve Music Group.
On 12 November 2011, it was announced that EMI would sell its recorded music operations to Universal Music Group for £1.2 billion ($1.9 billion) and its music publishing operations to a Sony-led consortium for $2.2 billion.[11] Among the other companies that had competed for the recorded music business was Warner Music Group which was reported to have made a $2 billion bid.[12] However, IMPALA has said that it would fight the merger.[13] In March 2012, the European Union opened an investigation into Universal's purchase of EMI's recorded music division[14] and has asked rivals and consumer groups whether the deal will result in higher prices and shut out competitors.[15] Coincidentally, UMG sister company StudioCanal has owned the EMI Films library for several years now.
On 21 September 2012, the sale of EMI to UMG was approved in both Europe and the United States by the European Commission and Federal Trade Commission respectively. However, the European Commission approved the deal only under the condition that the merged company divest one third of its total operations to other companies with "a proven track record in the music industry". UMG divested Mute Records, Parlophone, Roxy Recordings, MPS Records, Cooperative Music, Now That's What I Call Music!, Jazzland, Universal Greece, Sanctuary Records, Chrysalis Records, EMI Classics, Virgin Classics and EMI's regional labels across Europe in order to comply with this condition. The Beatles' recorded music library was allowed to remain with UMG despite being considered part of Parlophone and is now managed by UMG's reorganized Capitol Music Group worldwide.[16][17] Robbie Williams, who had previously recorded for Chrysalis, also had his catalogue remain at Universal.
2012-present: After EMI acquisition
Universal Music Group completed their acquisition of EMI on September 28, 2012.[18]
In November 2012, Steve Barnett was appointed Chairman & CEO of Capitol Music Group. He formerly served as COO of Columbia Records.[19]
In compliance the conditions of the European Commission after purchase of EMI, Universal Music Group sold a German-based music rights company BMG the Mute catalogue on December 22, 2012.[20] Two months later, BMG acquired Sanctuary Records for close to 50 million euros.[21]
On February 8, 2013, UMG sold to Warner Music Group the Parlophone Music Group consisting of Parlophone Records, Chrysalis Records, EMI Classics, Virgin Classics and EMI Records' Belgian, Czech, Danish, French, Norwegian, Portuguese, Spanish, Slovak and Swedish divisions, to a value of $765 million (£487 million).[22][23]
Play It Again Sam has acquired V2 Records and its Co-Operative Music distribution for $500,000 in March 2013.[24] Sony Music Entertainment has acquired Universal's share in Now That's What I Call Music for $10 million.
With EMI's absorption into Universal Music complete, its British operations will consist of five label units: Island, Polydor, Decca, Virgin EMI and Capitol.[25]
On April 2, 2013, the gospel music divisions of Motown Records and EMI merged to form a new label called Motown Gospel.[26]
On May 2013, Japanese company SoftBank offered 8.5 billion US dollars to Vivendi for the acquisition of UMG, but Vivendi rejected it.[27]
