Independent music labels urge EU to block Sony’s US$2.3 billion bid for EMI
Small labels say 80 per cent of new music comes from them, but they fear they will be squeezed out by the giant publisher if the deal goes ahead
Independent music labels group Impala has called on EU antitrust regulators to block Sony Corp’s bid to become the world’s largest music publisher with its US$2.3 billion offer for control of EMI, saying the combination would have too much market power.
Sony announced the deal in May, the boldest strategy move by its new CEO Kenichiro Yoshida, which would give it rights to 2.1 million songs from artists such as Drake, Sam Smith, Pharrell Williams and Sia.
The Japanese conglomerate, which currently owns a 30 per cent stake in EMI, wants to buy Mubalada Investment Co’s 60 per cent stake. Last month, it acquired the estate of Michael Jackson’s minority share of EMI.
The growing popularity of fixed-price music streaming services such as Spotify, Apple Music, Google Play, SoundCloud and YouTube has boosted the industry.
Sony’s control of EMI would give it the power to do what it wants, said Helen Smith, Impala’s executive chair.
