According to a report by Britain’s Financial Times and confirmation later coming from Billboard, Warner Music has just won the auction for several former EMI labels. Most notable on the list is Parlophone, the home to such artists as Coldplay, David Guetta and Daft Punk as well as such legendary past acts as Pink Floyd, Deep Purple and Jethro Tull.
Warner purchased the company from Universal Music for a reported £487 million (roughly, $765 million in U.S. currency). The auction comes as the result of a disposal process pushed by European regulators. The bid put forth by Warner will allow Universal Music to recoup almost half the money spent on its £1.2 billion dollar acquisition of EMI’s recorded music division.
Warner’s offer was more than $100 million ahead of other bidders. However, according to the article, Warner’s victory still surprised some industry insiders who perceived the company’s “vocal lobbying against Universal’s EMI deal” as an obstacle.
“We’re satisfied that our agreement with Warner Music will provide a home for [Parlophone label group] artists,” Universal’s chairman and chief executive Lucian Grainge is quoted as saying in the article.
Billboard editor Bill Werde tweeted about the purchase, stating that the deal should be settled by mid-2013