The Japanese Technology and content giant Sony Corporation said on Tuesday it would pay about USD 2.3 billion to gain control of EMI, becoming the world’s largest music publisher.
According to a Reuters report, the acquisition will give Sony a music portfolio of over 2 million songs from artists including Kanye West, Sam Smith, and Sia.
The deal is part of new CEO Kenichiro Yoshida’s mission to make revenue streams more stable with rights to entertainment content.
Currently, Sony owns about 30% of EMI. After the deal, it will give the company control of another 60%, bringing its total control of EMI to 90%.
Yoshida, who took the charge in April, also beefed up Sony’s content offerings this month with a $185 million deal to take a 39 percent stake in Peanuts Holdings, the company behind Snoopy and Charlie Brown.
DHX Media and Sony Music Entertainment had announced that they have entered into a definitive agreement whereby SMEJ will indirectly purchase 49% of DHX Media’s 80% interest in Peanuts for C$237 million (US$185 million) in cash, subject to customary working capital adjustments.
Pro forma for the transaction, DHX Media will own 41% of Peanuts, SMEJ will own 39%, and the members of the family of Charles M. Schulz will continue to own 20%.
The company said it aims to generate a total of 2 trillion yen ($18 billion) or more in cash flow over the next three years, up by at least a third from the previous three years.
The deal values EMI Music Publishing at $4.75 billion including debt, more than double the $2.2 billion value given in 2011 when a consortium led by Sony won bidding rights for the company.
