Sony Corp said on Tuesday it would pay about $2.3 billion to gain control of EMI, becoming the world’s largest music publisher in an industry that has found new life on the back of streaming services. The deal adds a catalogue of more than two million songs – including some of the greatest hits from the first half of the 20th century – to Sony’s already huge holdings.
The agreement is Sony’s first major deal under new CEO Kenichiro Yoshida, who noted that the music business has enjoyed a “resurgence” in recent years due to streaming services provided by companies such as Spotify and Apple.
With this purchase, Sony “is becoming one of the biggest music publishing companies, both in name and reality”, Yoshida said.
“We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry,” Yoshida said in an earlier statement.
“I believe this acquisition will be a particularly significant milestone for our long-term growth,” added Yoshira, who took the helm of Sony last month.
Sony said it had signed a deal with Abu Dhabi-based investment firm Mubadala to buy its 60% holding, giving the Japanese firm an indirect stake of approximately 90%.
The agreement values EMI Music Publishing at $4.75bn, the Sony statement said, adding that “the closing of the transaction is subject to certain closing conditions, including regulatory approvals”.
Yoshida also unveiled Sony’s latest strategic plan, which aims to pursue the direction his predecessor Kazuo Hirai had sought to revitalise one of Japan’s well-known firms.
“We are a technology firm, but the technology means not only electronics but also entertainment and content-creation” in today’s world, Yoshida said.
Sony will continue to strengthen its content services – as shown by Tuesday’s deal – and also invest heavily in cutting-edge technologies including image sensors, he said.
The company in April reported record annual profits of $4.5bn, a roaring recovery supported by better sales across the board and helped by box office blockbusters like its Jumanji reboot.
Kazuo Hirai recently stepped down as the firm’s chief executive after spending the past six years pulling it out of deep financial troubles. Hirai led an aggressive restructuring drive at Sony, cutting thousands of jobs while selling business units and assets.
EMI is the second-largest music publishing company by revenue and either owns or holds the rights to 2.1m pieces of music. Sony already owns 2.3m copyrights.
