Sony to buy additional 60% stake in EMI Music Publishing
Sony announced a deal with Mubadala Investment Company to acquire the latter’s 60% stake in EMI Music Publishing’s parent company DH Publishing, taking Sony’s share of the publisher to 90%.
The $2.3bn cash deal must be approved by regulators, and would value EMI at $4.75bn.
The announcement included financial figures for DH Publishing, sowing that it generated revenues of $615m in 2017 and a net profit of $164m, which means the deal would value EMI at 7.2x its annual revenues and 28.9x its annual profit.
Sony president and CEO Kenichiro Yoshida in a statement explained:
We are thrilled to bring EMI Music Publishing into the Sony family and maintain our number one position in the music publishing industry. The music business has enjoyed a resurgence over the past couple of years, driven largely by the rise of paid subscription based streaming services. In the entertainment space, we are focusing on building a strong IP portfolio, and I believe this acquisition will be a particularly significant milestone for our long-term growth.