EMI Music Publishing has had a complicated story in some ways — for example, its rights are now administered by Sony/ATV. But one thing that is simple is the scale of its high-quality catalog. It publishes over 2 million songs with classics including Carole King, Motown and Queen as well as contemporary repertoire including works by Drake, Alicia Keys, Pink, Sia, Sam Smith, Kanye West, and Pharrell Williams.
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As announced on May 22, Sony Corporation will acquire the stake in EMI Music Publishing currently held by Mubadala Investment Company with the expectation of eventual cash outlay at close-of-deal to equal $2.3 billion. It also equals a strong statement of belief in the business of songwriting.
"The music business has enjoyed a resurgence over the past couple of years, driven largely by the rise of paid subscription-based streaming services," said Sony Corporation President/CEO Kenichiro Yoshida. "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."
Who owns what, and how, after the deal won't alter Sony/ATV administering the rights catalog and will result in Sony's indirect ownership of 90 percent of EMI Music Publishing, making it into a consolidated subsidiary.
Consolidation is the theme in this switch and a case of the biggest getting bigger. However, new song publishers are born frequently and, with Sony's market leadership, the business could grow more efficient and remunerative.
