Live Nation about to snaffle Lollapalooza

As if the last decade or so hasn't been enough to remove any sense of anything countercultural at all about Lollapalooza, Live Nation are about to take a controlling stake in its parent company, C3.

Yeah. Ticketmaster will soon be bringing you the 'Looza.

Apple sniff around Beats

Beats headphones - the universal signal to shopkeepers that someone easily separated from their money has entered their store - are about to be bought out by Apple.

It's unclear if they're interested in the streaming or the headphone part of the business.

UPDATE: Rory Cellan-Jones is currently on Today suggesting they're interested in the streaming bit of Beats. That makes the three billion price tag seem expensive; unless there's a motivation to acquire a more solid Android user base.

Nitro scooped up onto Bicycle

I'm not sure it's entirely "punk" to be doing company take-overs, but Bicycle Music Company has acquired Nitro, adding The Offspring and The Damned catalogue to an already hefty collection of everything from Phil Ochs to Tone Loc.

Parlophone moves from one empire to another

As part of the deal to allow EMI to become part of Universal, Parlophone had to be put up for sale.

The idea being that if you take EMI out of the marketplace, power becomes highly concentrated in just three major labels' mechanised-hand-like-claws, and that would be a bad thing.

So, who has bought Parlophone, to save us from this idea that most of the Western world's chart music will be held by just three companies?

Universal.

I know what you're thinking: how does Parlophone being held by a different major make things more competitive?

But that is to misunderstand competition law: it exists not to allow everyone to compete equally; it functions to ensure that those who are already rigging the market play nicely amongst themeselves.

The Independent, by the way, thinks the key detail in this deal is something else:

Russian-born billionaire Blavatnik buys Blur and Coldplay in £500m Warners Parlophone takeover

Obviously, given the person paying for the ink and the Windows licences at the Indie, being Russian-born is rather more significant for that paper than it might be for the rest of us.

HMV Canada looking most likely to buy HMV

The chances of Hilco, owners of HMV Canada, taking over the British chain are looking stronger today as the major labels indicate they'd be willing to support the company through 'generous credit'.

Which is nice, although the majors were already offering splendid terms to HMV and it didn't really do much good.

Hilco have made something of a success in Canada, but this CBC report which tries to explain that success doesn't really offer much enlightenment:

After downsizing to 113 stores in the past year and a half, [HMV Canada's Nick] Williams said HMV Canada is now preparing to re-enter some of the markets it left, particularly in malls.

He credits the retailer's perseverance in the Canadian market to a decision to abandon several low-margin entertainment products, like video games and technology hardware like tablets and iPod docking stations, in favour of higher margin branded products like superhero T-shirts and coffee mugs branded with rock bands like Kiss.

The shift in selection helped HMV Canada deliver strong holiday shopping sales, with $65.4 million of sales over the period, coming in better than its $63.5 million holiday revenue target.

Hmm. Green Lantern t-shirts and novelty mugs. Doesn't HMV in the UK already sell a lot of that sort of tat already?

AEG up for sale

AEG - the Anschutz Entertainment business, not the fridge manufacturer - is up for sale.

It's a huge business, with more sports teams under its control than the three shadiest betting syndicates put together, and a slew of venues and promotion interests.

In the UK, AEG is probably most famous for working Michael Jackson to death during the preparations for the comeback that he'd never come back from, but also cascades coins out of owning the MEN Arena and taking care of the day-to-day running of the Millennium Dome.

There's no end of super-rich types interested in buying the company and, thus, becoming major-if-shadowy types in the music and sports businesses. Reuters runs its eye over some of the people kicking the tyres:

The list of potential AEG buyers includes investment firm Guggenheim Partners LLC and private equity firms such as Thomas H. Lee Partners LP, Bain Capital LLC and Colony Capital LLC.

Biotech billionaire Patrick Soon-Shiong, Los Angeles's richest person with more than $7 billion, has also said he would bid on AEG to use its sports and concert assets to promote a healthy lifestyle to LA citizens.

Given that most of AEG's assets aren't in LA, presumably Soon-Shiong is thinking that he'd do something attractive in the Target Center in Minneapolis and encourage LA residents to cycle out there to watch?

Seriously, Patrick? Using sports franchises to promote healthy lifestyles? A business which encourages people to sit down watching for long periods of time, consuming hot dogs and nachos while drinking beer from your own hats?

And yes, Bain Capital is on the list, holding out the tantalising prospect that every time you go to see a gig at the O2, you'll be helping Mitt Romney get a little richer.

UMG lob even more out the balloon

Is the hot-air-balloon of the UMG takeover of EMI rising high enough yet?

Apparently not - even throwing Parlophone (except the good bits) out of the merged company isn't pleasing European regulators, and so UMG is now looking about for other parts of the company to divest in order to keep everyone happy.

If it keeps agreeing to sell off bits at this rate, Universal might wind up smaller than it was before it tried to swallow EMI. The whole thing is starting to feel like the sort of 'what is point' that Quentin Letts might feel like investigating.

Universal takeover of EMI hits more grief

In Europe, Universal are pleading with the EU like a dumped boyfriend trying to respark a relationship ("How about if I stop with the Parlophoning? Babes, I'll get rid of Virgin if you want me to...").

Now the EMI takeover is running into trouble in the US, with the Senate starting to wonder if it's good news. MediaGuardian reports on the meddling:

Senators Herb Kohl and Mike Lee, the chairman and ranking member of the Senate antitrust subcommittee respectively, have written a six-page letter to FTC chairman Jon Leibowitz urging him to closely scrutinise the deal to see if it will substantially injure competition in violation of anti-trust laws.

The letter raises several concerns, including that the new combined company could threaten the development of new digital music services and that CD prices could rise.

"We believe this proposed acquisition presents significant competition issues significant competition issues that merit careful FTC review to ensure that the transaction is not likely to cause substantial harm to competition in the affected markets," the letter says.

Universal could always play the "hey, we already act like a monopoly - that's what the RIAA is for" card. But that might not help.

Jeremy Hunt suddenly worries about media plurality

Here's a lovely picture of the wonderfully impartial Jeremy Hunt having fun with Rupert Murdoch at the Olympics:

[It's from eyespymp on Twitter; don't worry, Rupert won't be upset, he loves photos shot from a distance exposing shady dalliances. His papers are full of them.)

Besides being enormous fun, what is the relevance of this photo? Well, hanging out with the boss of a company which the Met Police is considering bringing action against that company's board isn't the only thing that Hunt spent the end of the week doing.

He's also referred the Global Radio takeover of GMG Radio for an investigation.

On one level, this is as it should be - Global is taking on a few more stations and could be seen as reducing choice still further. Although, really, since Global and GCap merged, there's not been a great deal of plurality in commercial radio in the UK.

I might be being unfair to Hunt, but he was shadow culture secretary at the time Global and GCap merged, and I can't find any evidence he was exercised about that much more significant reduction of plurality in the radio world when that happened.

Indeed, Richard Eyre was the chairman of GCap who steered the merger with Global, and for his efforts Jeremy Hunt rewarded him with a position on the review into the plausibility of hyperlocal television in the UK.

So taking two large radio groups and turning them into one makes you an expert in local media plurality in Hunt's eyes, but folding a smaller radio group into a bigger one is a threat to that plurality. Somehow.

It seems even odder that Hunt - a man who we know to have been cheerleading for the UK's largest newspaper group to be given sole control over the UK's largest pay-TV operation - is suddenly worried that the changing hands of a small radio company needs to have a full investigation.

But then... the TV deal featured his chums The Murdochs. Could the detail that it's the Guardian Media Group selling the radio stations in this case be the cause of the sudden interest?

If Jeremy Hunt really believes that radio ownership is an issue, then why not prove that by holding an investigation into the industry as a whole? It's well needed, as anyone who has struggled to find out what's happening in their town using just a commercial radio station will testify.

Otherwise, this looks like just another politically-motivated piece of poor judgement from a man who makes something of a habit of such moves.

Overpriced headphone manufacturer acquires underpowered music service

Beats - who sell expensive headphones with a giant B on them - purchasing the MOG Music service.

The two sides have celebrated their union by releasing cascades of warm PR juice into the open, upturned faces of the public:

"Beats By Dre was born out of a need to restore the emotional connection with music that was lost by the degradation of sound from the digital music revolution, starting with the weakest link in the experience at the time - headphones," Beats President and COO Luke Wood said.

"But it was never about just headphones. We've since expanded the Beats mission to every other link in the music experience chain - speakers, mobile phones, personal computers and automobile sound systems.

"With MOG, we are adding the best music service to the Beats portfolio for the first truly end-to-end music experience. With their talent and technology, the possibilities around future innovation are endless."

It's not actually end-to-end, is it? It's not connected to the creation of music in any way, shape or form. And although MOG files (currently) are relatively high-quality, they're nowhere near CD-quality, are they? So it's not even moving back to the first degradation of sound of the early digital music revolution.

In effect, Luke Wood should have said "we've got some things to listen to music on, and we thought we should probably sell some music, too."

David Hyman, CEO of MOG added: "We're thrilled to be joining forces with Beats, a company that's committed at the highest level to the experience surrounding music delivery; the fit feels perfectly natural.

"MOG subscribers can expect continued excellence from the best music service in the market, and we look forward to putting premium music experiences in the hands of millions of music lovers everywhere."

"The experience surrounding music delivery" is one of those phrases that could only be uttered by someone who doesn't care for music. I've long argued that audiophilia is the enemy of a passion for music; someone standing around applauding the experience of music delivery sums that up nicely.

Guardian sell up radio stations; rivals livid

The Guardian Media Group has flogged off its radio arm to Global Radio, prompting much unhappiness amongst other radio groups:

UTV Media is also "seeking urgent clarification" as to how Global Radio can claim to be holding GMG Radio as a separate business during the regulatory scrutiny period, while it has brought in two senior executives to run its new acquisition following the departure of chief executive Stuart Taylor.
[...]
A spokesman for Bauer Media said the deal will "permanently lessen" choice for radio advertisers.

"Bauer Media believes the merger of Global and GMG Radio will be fully investigated by the competition authorities as this combination will increase the dominant market position that Global already has in local and national markets and permanently lessen choice for radio advertisers," he said. "We have no further comment to make at this time."

It's not so much that UTV Radio or Bauer are particularly exercised by plurality of ownership or actual choice:

UTV Media and Bauer Radio are understood to have submitted unsuccessful bids to buy GMG Radio

So it's more foot-stomping at the reduction of choice not resulting in the increase of their market share, then.

UMG-EMI merger goes to Washington

The US Senate is currently grinding through a decision on whether it should smile upon the merger of Universal and EMI. Yesterday senators held a hearing to allow themselves to be better informed before (meeting shadowy lobbyists, accepting small envelopes and) delivering their verdict.

As MusicAlly reports, much of the focus was on the digital music market. Warner's Edgar Bronfman Junior fretted that the 50% of biggest-selling artists held by the new Universal would allow it to decide which digital services thrived, and which wilted:

”At 50% of the hits, Universal can say no to anything”

Universal were shocked, shocked, at the suggestion they might use their new superpowers for anything but good:

UMG boss Lucian Grainge disagreed.

“The thought that we would constrict our artists who we’ve invested in, and construct the investment we make in EMI to dissolve the market would be commercial suicide,” he told the hearing. “We would be insane not to license, develop, make our music available through as many platforms, through as many retailers as possible.”

Yes, the idea of a major label trying to use its catalogue to strangle upstart, disruptive businesses and technologies - where would anyone get an idea like that, eh?

You suspect, though, that Bronfman is less worried about the idea of record companies taking on digital companies than he is about the new company's greater heft within the RIAA, the majors' preferred choice of digital closedown.

Tesco buys We7

Given that Tesco is having trouble with its core business right now, and critics are accusing it of neglecting being a shop while heading off on empire building sideplans, what to make of the purchase of we7?

The most notable thing is the price - £10.8million really is priced to move; perhaps that's why Tesco have waded into a business they don't have any experience of. Maybe it was such a good price - and perhaps placed near a checkout, making it too hard to resist.

For a company once part of the squad of potential iTunes killers to go for such a relatively small price is a hint that iTunes remains unkilled.

We7 are excited at the idea of working with their snow overlords; they hope that Tesco can bring the skill it no longer has for reaching consumers to their business, too.

Rhapsody buys European Napster rump

Gigaom seems convinced that Rhapsody's purchase of the UK and German parts of Napster will allow Rhapsody to take on Spotify in Europe.

Perhaps. But, given that I don't think many people in the UK had even realised there was an on-going European Napster after the closure of the American service suggests that it's not really going to make a difference in the UK.

Napster is doing a bit better in Germany - it holds 70% of the steaming market, so it's possible that's where Rhapsody sees the value with the UK service thrown in for free.

Napster doesn't face competition from Spotify in Germany yet and its position was boosted earlier this week when Grooveshark quit the country, saying that the higher royalty rates made it impossible to run a business. (The German royalties organisation, GEMA, counters that Grooveshark had a figure of zero in mind.)

Thank you kindly, and goodnight, EMI

After decades of swimming through the sea swallowing smaller labels, EMI has now, definitively, been swallowed itself. BBC News reports:

UK music firm EMI has said it will sell its recorded music unit for £1.2bn ($1.9bn) to Universal Music.

Reports have suggested that the other half of EMI's business - the lucrative music publishing unit - will go to a Sony-led consortium for more than $2bn.

Universal buying EMI is a bit like a bloke with lung disease buying an organ from a heavy smoker with a bad cough, and should probably be viewed as a nice rationalisation to make it easier for whoever ends up buying Universal.

Some artists, at least, welcome their new corporate overlords:

"I particularly welcome the fact that EMI will once again be owned by people who really do have music in their blood," said Rolling Stones singer Sir Mick Jagger.

The manager of Coldplay also welcomed Universal.

"They have assembled the most talented group of executives in the industry today and their success speaks for itself," Dave Holmes said.

This should not be seen as fawning over the new bosses in a desperate bid to keep in with them as there becomes less competition to sign clapped-out behemoths to record labels.

EMI's likely buyers

It's looking more and more likely that EMI will be split into two as the auction continues.

Warner Music will probably pick up the recorded music part of the company, with BMG Rights Management - a 50-50 Bertlesmann/ KKR group - taking the bit that makes money.

Ah, yes, KKR are private equity - that's been something of a success for EMI in the past, hasn't it?

Warners are expected to kill the EMI brand in America - or at least finish off the parts that are still twitching following Bungling Hands' time in charge - but might retain it in the UK. It wouldn't be too surprising if some form of EMI America label clung on at the edges, just to play to the sentimental amongst the people who still buy records.

Warners sold again

While everyone here was excitedly watching the pile of No votes grow in the referendum ("will they topple over? will they reach the moon?"), across the Atlantic something called Access Industries were buying Warner Music Group for USD8.25 a share.

Which values WMG at around three billion dollars.

Was it a shrewd deal? The shares immediately fell to USD7.63, so like most owners of Warners Access have started to lose money immediately.

Len Blavatnik, Chairman and founder of Access Industries, said, "I am excited to extend my longstanding involvement with Warner Music. It is a great company with a strong heritage and home to many exceptional artists. I look forward to working closely with the many talented people within the company."

Access have owned a chunk of Warners for quite a while - they bought in at the same time as Bronfman, but were only holding 2% of the stock prior to takeover.

In the UK, you'll know them best as the owners of Top-Up TV. If that doesn't stretch the meaning of the word "best" too far. (Yes, it turns out Top-Up TV is still going, too - unclear if Blavatnik hails the strong heritage of that company in the same way.)

Globally, the company is really driven by its partnership with BP to exploit the Russian oilfields as quickly as possible. You can see how worrying about a KD Lang album release might prove a pleasing distraction after dealing with that all day.

Naturally, the deal is mostly about floating Warners onto an ever-bigger sea of debt.

Citigroup grab EMI

The Terra Firma dream is over: Citi have seized control of EMI in lieu of unpaid debts.

Naturally, Citi are convinced it's the best thing all round:

Citi vice chairman Stephen Volk said EMI now had a strong balance sheet and "the ability to invest in and grow its business".

"This is a positive development for EMI, its employees, artists, songwriters and suppliers. EMI is an iconic business and we are completely supportive of both its management and its strategy," he added.

Wow. The one thing you can say about EMI is that it's been poorly managed and pursuing a rubbish strategy for the last few years - otherwise it wouldn't have defaulted on its loans and been taken over by Citi in the first place. It's a bit like someone trying to rescue a drowning man and saying that they'd like the drowner to continue with the flailing and vanishing under water.

The Citi takeover does relieve some of the debt Terra Firma larded onto EMI - now the company just owes £1.2bn instead of £3.4bn. That's good news - now EMI is just lumbering under an unimaginable debt instead of an unconscionable one.

Citi will be looking for a buyer. Good luck with that, Citi. For the time being, EMI will be run by bankers who don't understand it instead of by financial experts who don't understand it.

Terra Firma is still considering appealing against the findings of the New York court which said that Citi hadn't defrauded them when helping the EMI sale. If they do, that might make it harder for Citi to sell EMI on until that question is settled.

MySpace snap up Imeem, unworried by strange smell

Increasingly, Rupert Murdoch's purchase of MySpace looks like a kneejerk move that confused the panic with the strategic.

Clearly, he's managed to bring this management style to MySpace, whose purchase of MySpace looks exactly the same.

As takeovers go, it has all the thought and care of that box of Milk Trayy Way grabbed from a Wild Bean Cafe shelf moments before midnight on Valentine's Day.

Admittedly, MySpace are getting something dirt cheap - the most generous estimates are putting the price tag at nine million; shrewder heads suggest it might have been scooped up for a million dollars. The company has spent more than twenty million to get to this point.

On the other hand, MySpace is already seeing its bottom line assailed by the costs of offering streaming music - does it really need to pick up more of those costs? Especially since Imeem was undermined by high royalty demands from labels - exactly the same problem MySpace is struggling with.

Big Chill goes hyper-corporate

The Guardian calls the takeover of the Big Chill by Reading-Leeds promoter Festival Republic "quiet" - which is true; it happened in September after the owners went bust.

Still, I don't see what everyone's worried about - it's not like Glastonbury got noticeably more corporate and lost touch with itself after FR got involved there, right?

[Co-founder Katrina] Larkin said Festival Republic would provide much-needed financial security and logistical knowhow, leaving her to focus on the creative side of the festival. "I needed to protect the Big Chill, I needed to take it into a family that would look after it. There is an umbilical cord between me and that festival. I have given up too much to see it fail."

Hmm. Wasn't this pretty much the deal when Melvin Benn got involved down at Worthy Farm, too?

One of the big creditors of the Big Chill parent company was PRS - you do wonder if they were really acting in their members' best interests by not trying to work out a deal. Is it really better for musicians that Reading, Leeds, Latitude, Big Chill and Glastonbury are all in the same hands?