Music publisher agrees £1bn takeover

A music publishing group with the rights to songs by Robbie Williams and Coldplay agreed to a £1bn (€1.47bn) takeover deal today.

BMG Music Publishing, which has a catalogue of more than one million songs including Christina Aguilera, Maroon5, Keane and Justin Timberlake, agreed to the sale as part of moves to clear €4.5bn of debt belonging to its owner Bertelsmann.

The group will be integrated into French company Vivendi’s Universal Music Group, making it the “world leader” in music publishing.

The sale will add to Vivendi’s publishing catalogue which includes song titles American Pie, Strangers in the Night and Girl from Ipanema.

It also represents artists including U2, the Killers and Fratellis.

Universal Music Group’s labels also include Mercury Records, Polydor, Universal Motown Records, Group Decca and Verve.

Music publishers make money by licensing songs for use in movies, TV shows, CDs, video games, ringtones and other media.

BMG Music Publishing generated €37m of revenues and €81m of underlying profits in 2005.

Doug Morris, chairman and chief executive of Universal Music Group, said it was an “historic acquisition”.

Bertelsmann said it remained “fully committed” to Sony BMG – its recorded music business through its partnership with Sony – and it expects to receive the funds before the end of this year.

The deal, which has been backed by the supervisory boards of both companies, is awaiting approval from regulatory authorities.