EMI Records Goes To Universal

Universal’s $1.93 billion acquisition of EMI’s recorded music business ends a major chapter in the industry’s history, while setting up another that’ll likely take place in Paris and Brussels.

While the action has been focussed on U.S. banker Citigroup’s efforts to claw back some of the losses it’s suffered over EMI, it’ll now switch to Universal’s parent company’s Paris HQ and the Belgian capital, where IMPALA has already made plans to derail the deal.

Two days before the deal was inked Nov. 11, IMPALA executive chair Helen Smith made it clear the indies’ association is set against Citi doing a deal with Universal or Sony.

“I don’t believe any remedies would suffice” she said, indicating that Vivendi – Universal’s French owner – can expect a hard time running the purchase of EMI past the European regulatory authorities.

Smith said the particular problem with Universal is that it’s simply “too big already” to be allowed to gain more power.

“Making such a duopoly more powerful goes completely against the basic principles of competition in cultural markets,” she explained.

IMPALA is now expected to follow up its threat to complain to the European Commission about any deal that consolidates the industry into three major recorded music groups and four music publishers.

Vivendi chief exec Jean-Bernard Lévy, who has never made a secret of his interest in EMI, said the former English major can look forward to “a safe, long-term headquarters in Europe.”

At press time there was no further news on the auction of EMI’s publishing interests, which is believed to be a straight fight between BMG Rights Management and a Sony-led consortium.