UPDATE, 2/11/13, 3:30 p.m. EST: A Jones Day spokeswoman tells The Am Law Daily that the firm advised Warner Music Group on antitrust and competition aspects of the acquisition. Information regarding the firm’s involvement has been added in the eighth paragraph.
Warner Music Group Corp. said Thursday it has agreed to pay roughly $765 million to acquire the Parlophone Label Group from Universal Music Group (UMG).
The deal fulfills the main concession UMG and its parent, Vivendi, made in order to persuade antitrust regulators in Europe to approve the 2011 deal that saw UMG agree to acquire EMI Musica portfolio of assets that includes record labels Astralwerks and Capitol, as well as a roster of artists ranging from the Beastie Boys to Katy Perryfrom Citigroup for $1.9 billion. (As The Am Law Daily reported at the time, Citi sold EMI’s publishing unit to a Sony-led investor group for $2.2 billion in a related transaction.)
To appease regulators, UMG and Vivendi have agreed to part ways with Parlophone, which boasts a stable of performers featuring acts such as Coldplay, Gorillaz, Pet Shop Boys, and Radiohead. Parlophone is also famous for being The Beatles’ original U.K. label. The band released its first nine full-length albumsup to and including Sgt. Pepper’s Lonely Hearts Club Bandwith it before launching its own Apple label.
New Yorkbased Warner Music’s purchase of Parlophone is expected to close by midyear, pending regulatory approval.
Debevoise & Plimpton is advising Warner Music on the transaction with a team led by corporate chair Jeffrey Rosen, M&A partner Kevin Rinker, and finance partner Pierre Maugüé, all in New York. Securities partner Matthew Kaplan, tax partner David Schnabel, and securities counsel Lee Turnier Barnum are also working on the deal. Paul Robinson is Warner Music’s general counsel.
Rosen led a Debevoise team advising Access Industries in connection with its acquisition of Warner Music for $3.3 billion in 2011.
London-based law firm Olswang is also advising Warner Music with a team led by corporate partner Stephen Hermer.
