Sony Buys EMI Music Publishing

Sony is buying EMI Music Publishing for about $2.3 billion, making it the world’s biggest music publisher in an industry that has found new life in streaming services.

The acquisition is the biggest so far by new CEO Kenichiro Yoshida, getting its hands on a catalog of 2.1 million songs from Beyonce, Carole King and other artists as it embarks on a new growth plan built on content and services.

It also gives Sony a catalogue of more than 2 million songs from artists such as Kanye West, Sam Smith and Sia.

The Japanese company will buy about 60 percent equity interest from a consortium led by the Mubadala Investment for about $2 billion, according to Sony. The Tokyo-based company already owns almost 40 percent of EMI operates the business and had been in talks to buy the library for the past few months.

“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 the statement.

Sony-EMI Deal

The deal seeks to take advantage of the rapid growth in streaming music services like Spotify and Apple Music which has driven a recovery in the music industry.

It also fits in with Yoshida’s mission to make revenue streams more stable after his predecessor engineered a major turnaround that shifted the firm’s focus away from low-margin consumer electronics to entertainment content and image sensors.

EMI’s extensive catalog will solidify Sony’s position as the largest music publisher amid a boom in streaming services that has fueled valuations for music copyrights. The transaction is the first major strategic move by Kenichiro Yoshida, who took over as chief executive officer in April.

He also unveiled a three-year plan Tuesday that embraces Sony’s growing reliance on income from gaming subscriptions and entertainment.

“This investment in content intellectual property is a key stepping stone for our long-term growth,” Yoshida told a news conference.

EMI currently commands 15 percent of the music publishing industry which with the current Sony ATV business would make the Japanese entertainment and electronics giant the industry leader with market share of 26 percent, a company spokesman said.

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