SONY SET TO BUY EMI FOR US$1.9B

Japanese entertainment giant will add catalogue of more than 2 million songs to already huge repertoire under deal

JAPANESE entertainment giant Sony yesterday unveiled a US$1.9 billion (RM7.54 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 first half of the 20th century — to Sony’s already huge repertoire.

The agreement is Sony’s first major deal under new chief executive officer Kenichiro Yoshida, who noted the music business had 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”, said Yoshida.

“We are thrilled to bring EMI into the Sony family and maintain our No. 1 position in the music publishing industry.

“I believe this acquisition will be a particularly significant milestone for our long-term growth,” said 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-per cent holding, giving the Japanese firm an indirect stake of approximately 90 per cent.

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

Yoshida yesterday also unveiled Sony’s latest strategic plan, which aimed 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,” said Yoshida.