Sony Corp. will be acquiring EMI Music Publishing for US$ 2 billion

Sony Corp. will be acquiring EMI Music Publishing, which includes the catalog of 2.1 million songs of artists including Carole King, Beyonce, and others. The Tokyo-based tech giant already owns 40 percent shares in the EMI, it was asked to buy a library of the company before few months.
The Tokyo-based tech giant said it will be the owner of 60 percent equity interest from Mubadala Investment Co. for US$ 2 billion. EMI’s catalog will improve the position of the Sony in the music publisher market. This is first strategic move by the new CEO of the Sony – Kenichiro Yoshida. He disclosed his plan of three years which enhances reliance of company on income from subscriptions of games, music, and entertainment.
Kenichiro Yoshida said in his statement that they are eager to add the EMI Music Publishing into Sony Corp.’s family. This addition will be a bonus point for the company to hold a significant share in the market. Sony will be paying US$ 1.9 billion for the remaining equity shares, with stock and management incentives its price will be equal to US$ 2.3 billion, a spokesperson of the company explained.
Sony has predicted profit growth of next three years which is quite a conservative outlook. Its shares fell by 3.7 percent since 1st May.
Mubadala said that deal has a value of US$ 4.75 billion which is doubled figure of what Sony has paid the company. The deal is the largest deal in the music industry. This deal has offered a great cash flow dispirited with the cyclical business of recorded music. Earlier, this business is depending upon retail sales.
The paid streaming on the devices of Apple Inc. and Spotify Ltd. has driven the sales in music-industry from three years. Labels own the recorded songs whereas publishers own the new and freshly written songs.
Earlier, the company has disclosed that it will gain US$ 1 billion from its shares in debut only