The founders of indie label group [PIAS] have introduced they’re promoting the remaining shares they maintain within the firm to Common Music Group (UMG), making the music big the agency’s majority shareholder.
In an announcement on Tuesday (Oct. 15), Kenny Gates mentioned he and his [PIAS] co-founder Michel Lambot have been promoting their shares to UMG, which acquired a 49% stake within the firm in 2022, to “permit us to supply a really international distribution and providers platform to the unbiased music group.”
Monetary phrases weren’t revealed for the deal, which expands upon a strategic international partnership between the 2 firms that started in 2021. When UMG acquired the 49% stake in [PIAS] for an undisclosed sum the next 12 months, Gates and Lambot retained majority management of the corporate.
Possession of [PIAS] now seems to be absolutely within the arms of UMG, though representatives of the European indie label group and UMG declined to increase upon the data contained in Tuesday’s press launch.
Particulars which have been confirmed as a part of the brand new association embrace the merger of Virgin Music Group and [PIAS]’s providers division [Integral], which gives bodily and digital distribution providers to greater than 100 indie label companions together with ATO, Beggars Group and Secretly Group.
The newly mixed groups will present “unbiased entrepreneurs with world class providers and entry to a bespoke, stand-alone worldwide distribution community,” mentioned [PIAS]. Reps for the agency and UMG declined to remark when requested if the merger would lead to any job losses.
The [PIAS] Label Group, which incorporates the indie labels Play It Once more Sam, harmonia mundi, Spinefarm, Supply and companion imprints similar to ATO, Heavenly, Mute and Transgressive, will stay fully autonomous, mentioned the corporate. Artists signed to or distributed by these labels embrace Nick Cave & The Dangerous Seeds, Kneecap, Sofiane Pamart, Sleep Token, Arlo Parks and Black Pumas.
“I’m promoting my shares not my soul,” mentioned Gates, who will stay CEO of [PIAS] and sit on the Virgin Music Group important board and advisory group, in an announcement.
“Since agreeing [to] a strategic alliance with UMG in 2021 we’ve discovered them to be supportive and engaged companions who’ve added actual worth to our providing,” continued Gates, describing the choice to relinquish the founders’ remaining shareholdings in [PIAS] as a “pragmatic one.”
The corporate’s current management staff will proceed to steer day-to-day operations “and nothing will change culturally or commercially for our current shoppers and companions,” mentioned Gates, who co-founded [PIAS] with Lambot in Brussels, Belgium, in 1983.
Lambot mentioned that regardless of initially having “some issues” about partnering with UMG in 2021, the expertise has surpassed his expectations.
“Our relationship to this point has been fruitful, convivial and every little thing we hoped it could or not it’s,” he mentioned. “This new section, which is able to see us working even nearer collectively guarantees to be an thrilling new period for [PIAS], our workers, our companions and the artists we symbolize.”
“I’ve recognized Kenny and Michel for many years, starting within the 80s once we have been all signing bands from rising scenes in Europe,” added Lucian Grainge, chairman/CEO of UMG, in an announcement.
“Since that point, Kenny and Michel have constructed [PIAS] into an organization that stands for authenticity and the very best in unbiased music,” Grainge added. “And it’s these qualities that aren’t solely vital to me personally however that additionally make [PIAS] an ideal match for UMG’s entrepreneurial and artistic tradition.”
“We’re delighted by all that’s been achieved over the previous three years collectively, and we sit up for working with Kenny and Michel and their whole staff, together with their household of artists and labels, to additional construct [PIAS]’s legacy,” mentioned UMG government vp/CFO/president of operations Boyd Muir. “Their expertise and insights have considerably helped to develop this dynamic space of our enterprise. Finishing the acquisition of [PIAS] Label Group and [Integral] reinforces our best-in-class label providers operations and enhances our potential to help the unbiased artist and label group globally.”
