Sony completes $2.3b acquisition of EMI Music

Sony has completed its US$2.3 billion acquisition of EMI Music Publishing according to an SEC filing posted November 14.

The expected merger of EMI Music Publishing and Sony/ATV will generate revenue of $1.275 billion.

The latest revenue posts saw EMI Music Publishing generate revenue of $663 million and Sony/ATV produce $610 million.

This announcement of the final buy-out comes three weeks after European regulators dismissed concerns by the independent sector and approved the remaining 60% buy-out on October 26.

European association IMPALA, which led the indie sector’s opposition, is still working out whether to appeal.

Sony said in a statement: “As a result of this acquisition, Sony expects to record additional operating income of approximately ¥105 billion (about $925 million), representing a non-cash step-up gain for the approximately 40% equity interest in EMI that Sony already owned and reflecting costs relating to the acquisition, in the Music segment in the third quarter of the fiscal year ending March 31, 2019.”

Sony Corp first started its EMI purchase six years ago, putting up $320 million as part of a consortium that offered $2.2 billion,

Since then it has paid $2.3 billion paying off the others in the consortium.

It then acquired the Jackson estate’s near-10% share for $287.5 million and additionally assumed its $1.359 billion debt

According to the SEC filing, Sony has also assumed EMI’s existing interest-bearing debt of approximately $1.3 billion.

It has already repaid $960 million of this.

To get the EMI Music Publishing rights, Sony has paid a total of $4.317 billion – about $3.97 billion in cash and 400 million in debt.