Grainge: PLG sale provides ‘significant resources for rebuilding EMI’

Lucian Grainge has commented on Warner’s now complete acquisition of Parlophone Label Group from Universal.The Universal Music Group CEO and chairman has said that the £487 million cash paid for PLG will go towards rebuilding EMI as well as establishing UMG as a leader in the music industry’s digital transformation.

“We are very pleased to complete this transaction – another great step forward positioning Universal Music to fully capitalize on music’s many new and exciting opportunities,” said Grainge.

“Over the course of the past year, we successfully acquired the recorded music assets of the legendary British music company EMI, revitalised its iconic Capitol Records and Virgin Records and further strengthened UMG’s position as the global leader in music.

“Now, given PLG’s strong valuation, the transaction’s proceeds provide us significant resources for our global reinvestment program rebuilding EMI, preserving its heritage and helping all of UMG lead the industry’s digital transformation – and even better able to serve artists, songwriters and business partners, while offering fans more choice.”

WMG completed its Parlophone Label Group yesterday.

In addition to the Parlophone label, PLG includes the Chrysalis/Ensign labels in the United Kingdom, EMI Classics and Virgin Classics and the EMI operating companies in Belgium, Czech Republic, Denmark, France, Norway, Poland, Portugal, Slovakia, Spain and Sweden.

The transaction was agreed on February 6, 2013 between Warner Music Group and Universal Music Group, with PLG being a necessary divestment of the latter’s acquisition of EMI earlier this year.

Source: Music Week