Universal's controversial EMI takeover has been approved – but the label must sell Parlophone.
The music industry is in a state of flux. Struggling to adapt to the digital climate, labels around the globe are changing their approach. Of the major labels, EMI have arguably been hardest hit. Numerous takeover deals have been leaked to the press, before Universal began concrete plans to swallow up the historic British imprint. Due to monopoly laws, the deal was passed to the European Commission for analysis.
This morning Universal was given the go-ahead to purchase EMI for a total of £1.2 billion. However the deal does come with some catches. Parlophone must be sold off, meaning that artists such as David Bowie, Kylie Minogue and more will b leaving for pastures new. In addition to this, Universal must sell off its 50% stake in the Now! That's What I Call Music compilations – traditionally, enormously successful compilations.
"The very significant commitments proposed by Universal will ensure that competition in the music industry is preserved and that European consumers continue to enjoy all its benefits," EU competition commissioner Joaquin Almunia said in a statement. (via BBC)
"Competition in the music business is crucial to preserve choice, cultural diversity and innovation" he continued. "In this investigation, we have paid close attention to digital innovation, which is changing the way that people listen to music."
