On Tuesday, May 22, Sony said it would pay about US$2.3 billion to gain control of EMI to become the world’s largest music publisher in an industry that has found new life on the back of streaming services, reported CNN.
The acquisition is the biggest strategic move yet by new CEO Kenichiro Yoshida and will give Sony a catalogue of more than 2 million songs from artists such as Kanye West, Sam Smith, and Sia.
The deal is part of Yoshida’s mission to make revenue streams more stable with rights to entertainment content—a strategy that follows a major revamp by his predecessor which shifted Sony’s focus away from low-margin consumer electronics.
“The music business has enjoyed a resurgence over the past couple of years, driven largely by the rise of paid subscription-based streaming services,” Sony CEO Kenichiro Yoshida said in a statement.
He added that Sony is trying to get hold of more intellectual property in the entertainment industry, describing the EMI deal as a “significant milestone.”
Full Content: CNN