Universal Confirms EMI-Virgin

Universal has confirmed a Sunday Times story that it was about to realign its labels to accommodate those it bought in its $1.9 billion takeover of EMI.

In an interview with Universal head Lucian Grainge, the paper learned that re-establishing Capitol would be a priority in his bid to restore some famous labels to their former glory.

The re-launch of Capitol as a major UK label will come later in the year, although there’s been no confirmation of the Sunday Times speculation that it will have its headquarters at London’s famous Abbey Road studios.

“Imagine if we could recreate Capitol and put it into Abbey Road,” Grainge said in a full-page feature in the paper’s business section March 17, which detailed his rise from talent scout to running the world’s biggest music company.

A couple of days later, Universal confirmed that Grainge is also pooling some of his labels into a new company called Virgin-EMI, which will bring Mercury and the recently acquired Virgin label under one roof.

Gainge told the Sunday Times that it will “commit millions of pounds to signing unknown acts.”

He said he sees the changes as “an opportunity to grow this company and to take all that is best in EMI and Virgin and Capitol and add to it.”

The new label will draw its executive staff and artists from Mercury Records, which includes Island Def Jam Music Group, although it will have its own marketing and A&R departments.

Virgin-EMI will be headed by Ted Cockle, a co-president of Island and then Virgin since 2008, but Mercury managing director Jason Iley is on the way out.

“I’ve had an incredible journey at Universal, having worked at Polydor, Island and Mercury, and been privileged to work with some inspiring artists and executives over the past 15 years,” Iley said.

Iley will continue to work closely with Universal Music on “some projects,” apparently on a consultancy basis.
The new label’s roster includes Justin Bieber, Rihanna, Kanye West, Emeli Sandé, Taylor Swift, Jake Bugg, Elton John, and Bastille.

The new Virgin-EMI and the re-launched Capitol, along with Island, Polydor and Decca, means Universal now owns what could be seen as five major labels.

After selling Parlophone to Warner Music Group for £487 million and bringing the proceeds from European Commission-mandated asset disposals to £600 million, Grainge has gained control of two-thirds of EMI for half of what Universal paid for the whole.