Court win for Sony over Beatles catalogue
A merger deal would give Sony full control of the rights to a music publishing giant with millions of songs, including the song catalogue of The Beatles.
The European Commission has cleared a proposed $US750 million ($A986 million) acquisition by Sony of sole control of the Sony/ATV music catalogue owned by the Michael Jackson estate. The merger would give Sony full control of the rights to a music publishing giant with millions of songs, including the song catalogue of The Beatles and music by Bob Dylan, Lady Gaga and Taylor Swift.
The commission found that the transaction would have no negative impact on competition in any of the markets for recorded music and music publishing in Europe. In particular, the transaction will not "materially increase Sony's market power" in relation to digital music providers compared to the situation prior to the merger, the commission said. Sony/ATV, a music publishing company, is currently jointly owned and controlled by Sony and the estate of Michael Jackson, who died in 2009.
Sony/ATV is the exclusive administrator of the catalogue of EMI Music Publishing. Warner Music, a competitor to Sony, and Impala, a trade group representing independent music companies, opposed the deal. Helen Smith, executive chairwoman of Impala, called the decision "clearly wrong," and said that it went against the commission's earlier views on consolidation in music, according to The New York Times.
The two sides agreed in March to a deal in which Sony is to pay Jackson's heirs $US750 million for their share of the rights to Sony/ATV. Jackson bought ATV in 1985 for $US41.5 million. It has been described as "one of the smartest purchases in music history" by lawyers for the Jackson estate.
Source: AAP
