Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. Sony Group Corporation
  6. News
  7. Summary
    6758   JP3435000009

SONY GROUP CORPORATION

(6758)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Universal gets EU nod for $1.9-billion EMI buy, must sell assets

09/21/2012 | 10:46am EDT
A man enters EMI offices in west London

BRUSSELS (Reuters) - Vivendi's Universal Music Group won EU regulatory approval for its $1.9 billion purchase of EMI's recorded music business, after agreeing to sell labels that account for about a third of the British company's revenues.

The U.S. Federal Trade Commission is expected to approve the transaction without conditions later on Friday, according to a source close to the deal.

Universal said on Friday it would sell some of EMI's most prized assets, such as the Parlophone label - home to star acts like Coldplay and Queen - in a move which some analysts said significantly reduced the attractiveness of the deal.

With European and U.S. approval, the companies will be able to close the transaction.

"The whole point of the deal was the back catalogue and getting EMI's artists. But when you look at the bands they had to give away, they are some of their best ones," said Conor O'Shea, analyst at Kepler Capital Markets.

Nonetheless, the deal cements Universal's No.1 position in the European music industry, with a vast library of current top-selling and legendary names including Jay-Z, Kanye West, Katy Perry, Robbie Williams, Pink Floyd and The Beatles.

And some analysts said the sale of assets equivalent to around 30 percent of EMI's group revenues, or roughly 10 percent of sales for the combined group, could raise as much as $750 million and help Vivendi reduce its debt pile.

The European Commission, which had raised concerns over the potential market power of the combined group, said the disposals would have to be completed in six months.

Rivals Warner Music Group and BMG - which is owned by German media group Bertelsmann and private equity group KKR - are expected to have the edge in acquiring the assets because of their financial resources and music expertise.

A source familiar with Warner's thinking said the European Commission told Universal it would have to sell at least two-thirds of the package to a single buyer.

Warner is the world's third-biggest recorded music company, behind global No.1 Universal and second-placed Sony.

The EU watchdog said buyers must be active record firms or those with a proven track record in the music industry, ensuring there would be a strong rival to Universal.

Virgin founder Richard Branson and Sony Music are among those eyeing the assets, sources have told Reuters.

Goldman Sachs and BAML are advising Vivendi on the disposals.

ON THE BLOCK

"These divestitures may lower the future value of synergies, but also reduce the net financial commitment in 2012, when group debt is under scrutiny by rating agencies. So Vivendi may not be so unhappy, after all, from having to give up these assets," said Bernstein analyst Claudio Aspesi.

On the block will be the Mute, Ensign and Chrysalis labels, EMI Classics, Virgin Classics, EMI's share of the "NOW! That's what I call music" compilation business, and EMI units in France, Spain, Belgium, Denmark, the Czech Republic, Poland, Portugal, Sweden and Norway.

In addition, Universal will sell its brands Sanctuary, Co-Op Music Ltd, King Island Roxystar, MPS Records, its share in Jazzland, and its Greek unit.

The company also pledged not to include "most favored nation" clauses in deals with digital customers for 10 years. Such clauses bar its customers from offering more favourable terms to rivals.

"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.

The combined Universal/EMI will have a market share below 40 percent in Europe after the asset sales, a threshold which typically prompts regulatory concerns.

EMI's seller, Citigroup Inc, acquired EMI from buyout group Terra Firma when it defaulted on loans owed to the investment bank.

(Additional reporting by Leila Abboud in Paris, Sophie Sassard in London and Diane Bartz in Washington; Editing by Rex Merrifield, Mark Potter and Bernadette Baum)

By Foo Yun Chee

Stocks treated in this article : Sony Corporation, Citigroup Inc., VIVENDI

ę Reuters 2012
Stocks mentioned in the article
ChangeLast1st jan.
BEST INC. 3.68% 1.69 Delayed Quote.-20.10%
CITIGROUP INC. 1.94% 68.24 Delayed Quote.8.56%
SONY GROUP CORPORATION 0.16% 12360 End-of-day quote.20.18%
THE GOLDMAN SACHS GROUP, INC. 2.56% 385.47 Delayed Quote.42.52%
UNIVERSAL MUSIC GROUP N.V. -3.84% 24.135 Real-time Quote.0.00%
VIVENDI SE 2.14% 10.725 Real-time Quote.-60.20%
All news about SONY GROUP CORPORATION
11:50aGLOBAL MARKETS LIVE : Airbus, Fedex, Google, McDonald's, Roche...
07:36aSONY : Pictures Networks India, India's Zee Entertainment to Pursue Merger
MT
06:58aIndian Benchmarks Close in Red Midweek; Zee Entertainment Enterprises Soars 31%
MT
06:52aIndian shares end flat as private banks drag; media stocks surge
RE
06:12aSONY : Material Event (Form 6-K)
PU
04:21aZEE ENTERTAINMENT ENTERPRISES : Board Approves in Principle Merger with Sony's Indian Unit..
MT
01:33aTech, auto help Indian shares eke out gains; Zee soars
RE
09/21Zee Entertainment Board Agrees to Merger With Sony India
DJ
09/21SONY : Pictures networks india signs exclusive non-binding term sheet with zee entertainme..
PU
09/21JAKKS Pacific Signs Cobra Kai Costume Deal With Sony Pictures Consumer Products
MT
More news
Analyst Recommendations on SONY GROUP CORPORATION
More recommendations
Financials
Sales 2022 9 773 B 88 998 M 88 998 M
Net income 2022 775 B 7 053 M 7 053 M
Net cash 2022 2 742 B 24 969 M 24 969 M
P/E ratio 2022 19,8x
Yield 2022 0,51%
Capitalization 15 327 B 140 B 140 B
EV / Sales 2022 1,29x
EV / Sales 2023 1,17x
Nbr of Employees 109 700
Free-Float 98,2%
Chart SONY GROUP CORPORATION
Duration : Period :
Sony Group Corporation Technical Analysis Chart | 6758 | JP3435000009 | MarketScreener
Technical analysis trends SONY GROUP CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 19
Last Close Price 12 360,00 JPY
Average target price 15 089,47 JPY
Spread / Average Target 22,1%
EPS Revisions
Managers and Directors
Kenichiro Yoshida Co-Chairman, President & Chief Executive Officer
Hiroki Totoki CFO, Director, VP & Head-Business Administration
Shuzo Sumi Co-Chairman
Toru Katsumoto Chief Technology Officer, Executive VP, Head-R&D
Tsuyoshi Kodera Head-Information Systems & Security
Sector and Competitors