(UPDATE 2) Warner Music Group has purchased EMI's Parlophone music group from Universal for $765 million. The deal includes Parlophone, Chrysalis, Ensign and other labels along with related EMI European subsidiaries and included the catalogs and contracts for Coldplay, Pink Floyd, David Guetta, Iron Maiden and others.
EMI labels in Belgium, the Czech Republic, Denmark, France, Norway, Portugal, Spain, Slovakia and Sweden are also part of the deal.
Divestiture of Parlphone was required by EU regulators as part of their approval Universal Music GrOup's purchase of EMI, and they must also approve today's deal. Universal will retain EMI’s Capitol and Virgin labels which includes the Beatles, Katy Perry and Lady Antebellum.
The deal is a major coup for WMG, though some observers may beleive they've overpaid. Earlier estimates valued these assets at closer to $500 milliion. But in the end, WMG beat back a joint Sony Music and BMG Rights Management bid, a joint Simon Fuller and Chris Blackwell offer, and Ronald Perelman’s company MacAndrews & Forbes.
“This is a very important milestone for Warner Music, reflecting our commitment to artist development by strengthening our worldwide roster, global footprint and executive talent,” Len Blavatnik, the founder of Access Industries, Warner Music's parrent company, said in a statement.