TMN RETROSPECTIVE REPORT: Mushroom sold to News Corp. – 1998

TMN celebrates two decades in this ever-shifting music industry by taking a look back at the key moments – both triumphant and tumultuous – in the Australian music business.

1998
MUSHROOM SOLD TO NEWS CORP.

Mushroom Records is the most successful Australian independent label in history, which is why it came as little surprise that its sale to conglomerate News Corp. in 1998 ruffled some feathers in the industry. Gudinski had previously sold 49% of the company to News Corp in 1993, and shed the remaining 51% five years later for a sum estimated to be in the ballpark of $40m. The label was merged with the News Corp- owned entity Festival to form Festival Mushroom. In 1999, Gudinski still wished to release Australian records, and so quickly formed Liberation Music with Warren Costello. By 2005, News Corp had sold Festival Mushroom to Warner, while Gudinski bought back Festival Music Publishing. Warner held onto the label until 2010, when Gudinski bought it back, retaining complete ownership of the once-again independent powerhouse.

Our year on year reports are published courtesy of the Australian Music Industry Quarterly magazine. For your free copy click here