Universal Buys Univision Music Division

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Seeking to become el grande in the growing U.S. Latin music market, Universal Music Group on Thursday said it had agreed to buy Univision Communications Inc.’s record division, the Los Angeles Times reports.


The purchase price was nearly $140 million, according to two people close to the negotiations who asked not to be identified because the financial terms were confidential.

The acquisition, which is subject to regulatory approval, would more than triple Universal’s share of the Latin music market to about 49%. And it would expand the range of the world’s largest record company into such popular niches as regional Mexican music, Latin pop, Latin rap and hip-hop.


“This deal is about following the changing demographics of the population of the country,” said Zach Horowitz, president and chief operating officer of Universal Music, who negotiated the deal. “This demographic is growing at a much faster rate than any other segment of the population. And we will have this treasure trove of a catalog that goes back 30 years and includes some of the biggest artists in Latin music today.”


Universal’s French parent, Vivendi Universal, is building its music portfolio at a time when much of the industry is retrenching in the face of plunging CD sales and online piracy. For Spanish-language media giant Univision, the sale will allow it to shed a troublesome noncore asset and to pay down a smidgen of the $10-billion debt that its new owners assumed when they acquired the company last year.


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