Universal acquires 49% stake in independent music company [PIAS]
Universal Music Group has acquired a minority stake in an independent music company [PIAS] for an unknown sum.
The deal saw UMG take a 49% stake in the [PIAS] Group, follows the formation of a strategic global alliance between the two companies in June 2021.
According to the press release issued on Wednesday (November 30), as per their new agreement, “[PIAS] will remain fully independent and its founders, Kenny Gates and Michel Lambot, will retain majority control of the company.”
The press release adds that “UMG will have no seats on the company’s board of directors.”
[PIAS] has over 300 employees and two core areas: the [PIAS] Label Group, which oversees the company’s various record label interests and [Integral] Distribution and Label Services, which supports its own in-house labels and over 100 independent label partners around the world.
Some of these label partners are ATO, Beggars Group, Bella Union, Chrysalis, Domino, Epitaph, LSO, Mute, Ninja Tune, Partisan, Secretly Group, Transgressive and Warp.
Commenting on the deal, Sir Lucian Grainge, Chairman and CEO of Universal Music Group said: “The courageously independent and music-centric culture that Kenny and Michel have built over the past four decades has provided an important creative network for so many artists. ”
“The boldly independent and music-centric culture Kenny and Michel have built over the past four decades has provided a vital creative network for so many artists.”
Sir Lucian Grainge, Universal Music Group
Sir Lucian Grainge added: “While much of the past has focused on ‘majors versus indies’, it is now clear that the important divide in our industry is between those who are committed to artistic development and those who are Prescribe quantity instead of quality.
“We share Kenny and Michel’s passion for developing artists and moving culture, and we know that a healthy music ecosystem needs companies like these [PIAS] dedicated to amplifying the best voices in independent music.”
“We have had an excellent relationship with the Universal Music Group team since announcing our strategic global alliance with them last year.”
Michel Lambot, [PIAS]
Michel Lambot, co-founder of [PIAS]said, “We have had an excellent relationship with the Universal Music Group team since announcing our strategic global alliance with them last year.
“Kenny and I are celebrating our company’s 40th anniversaryth Anniversary this year and we remain as ambitious as we started to expand our global footprint and provide a world class service to the independent music community.”
“Today we compete with financial and technology giants and a partner like Universal Music Group gives us the extra support to compete and grow.”
Kenny Gates, [PIAS]
Kenny Gates, co-founder and CEO of [PIAS] said: “Today we compete with financial and technology giants and a partner like Universal Music Group gives us the extra support to compete and grow.
“Universal has made it clear that they like us, trust us and need us because they can’t do what we do and they appreciate it very much.
“For Michel and I, this is our life’s work and an ongoing journey, and I look forward to the prospect of this new chapter in the life of [PIAS] . This step makes us stronger and secures the future of our brand, our people and our partners, while maintaining control of our destiny.”
Today’s news comes two months after the expiry (on September 21, 2022) of Universal Music Group’s 10-year ban in Europe from buying back assets – or re-signing artists – involved in its EMI-related divestitures.
MBW recently pointed out that after expiring its post-EMI restrictions in September Universal would be legally free to approach [PIAS] with a minority or majority stake offer.
music business worldwide
https://www.musicbusinessworldwide.com/universal-acquires-49-stake-in-independent-music-powerhouse-pias/ Universal acquires 49% stake in independent music company [PIAS]