Undoubtedly the biggest story in the global music industry today: [PIAS] The 42-year-old European independent music giant has been fully acquired by Universal Music Group.
With this transaction, UMG now owns 100% [PIAS] Group’s initial acquisition 49% Co-founder of the company, kenny gates and Michael Lambert2022.
after sale, [PIAS]label services department, [Integral]to merge with Universal Pictures Virgin Music Groupsignificantly strengthening VMG’s presence, supply chain and customer base in the EU, UK and beyond.
Gates will join VMG’s board.
at the same time, [PIAS]Owned and associated label operations, this [PIAS] Tag Group (PLG)will also be owned by UMG – but importantly, it will operate as a “fully autonomous, independent company” run by Gates as its CEO.
This is based on Gates In an internal email sent to his team earlier today (October 15), global music business.
The memo confirms that PLG will now be a customer of the newly merged company Virgin Music Group/[Integral] Setting. But, Gates said, “that’s where the association’s development ends. There will be no other interactions with the broader UMG organization.”
(Although not stated publicly, the implication is Gates Insist that he and the team around him have managerial autonomy PLGas part of his “long-term contract” with UMG.
you can read Gates’s Information for employees – complete “Fuck the haters” Statement – full text below…
Honey [PIAS] team members,
As you may have heard, Michelle and I have decided to sell the remaining shares we own [PIAS] To our existing partners at Universal Studios (UMG).
Before we talk about this agreement in the media and to others outside the company, we thought you should hear more details and context directly from us.
We know – like both of us – that this company is an important part of your lives and that together we have created a special and unique culture that we are proud of and cherish.
First, we want to make it clear: Michelle and I made the decision to sell our remaining shares on our own initiative. No one, least of all our partners at Universal Music Group, is enticing us into selling or forcing us to do anything against our will; the decision is ours.
It’s important that everyone understands this, as the reasons behind this decision are both personal and business.
As part of this agreement, I commit to a new long-term contract. However, Michel has decided to step down from his day-to-day role but will remain a key advisor to the company going forward.
We sold our shares, but not our souls.
Simply put, I love what I do and am very excited about the prospects of commercial success and artistic discovery that lie ahead of us. From a commercial perspective, this decision is based on commercial pragmatism and is a natural result of the mutual respect and trust that has grown over the past few years between us, Sir Lucian Grainge, Boyd Muir and other members of UMG’s senior management team.
While in the past we have seen independent companies like ours get acquired by larger companies and lose their own identity and culture, I can assure you that this will not happen to us. There’s definitely going to be some speculation about what’s going to happen, but let’s all focus on creating a great future for ourselves.
Sir Lucian Grainge, Chief Executive of UMG, has a clear and proven strategy for working with independent entrepreneurs like us, whilst valuing and encouraging our culture and helping it to thrive. We have requested and received personal and contractual assurances that this will remain the case.
Then, the following will happen:
- [Integral]our distribution division will be merged with Virgin, UMG’s service and distribution teams. Together we will become stronger in this increasingly competitive environment. You may already know that Virgin will be using Integral’s physical supply chain, which is a clear indication that Virgin wants and will be different and separate from the wider Universal group.
- this [PIAS] Label Group (PLG) will remain a fully autonomous and independent company. I will continue to lead the company alongside the current management team. Like our distribution brands, PLG will be a global distribution customer of Virgin – Integral, but this is the extent of the association’s development. There will be no other interaction with the wider UMG organization. I will report directly to Sir Lucian Grainge and Boyd Muir, and together we will make decisions that are in the best interests of PLG and the artists we represent.
- In the UK, PLG will move into new premises in Bermondsey and the Virgin team will move into our current offices.
- For all of our offices outside the UK, nothing will change for the foreseeable future.
We will be reviewing our operating structure, which may have some marginal impact on how we organize staffing, but please be assured that we are not planning to make sweeping changes.
I hope you’re as excited as I am about this new era for our company. Throughout our 42-year history, we’ve always been at our best as we’ve evolved and adapted to the needs of the wider music industry.
I remain fully committed to the independent spirit and community, and I will continue to serve as CEO of the company [PIAS] The record company also holds senior positions on Virgin’s board of directors. So I’ll be able to make sure that the labels that we represent are taken care of and get the care and attention that we’ve always given them.
As for our artists, I believe the autonomy we will continue to enjoy, coupled with the resources now available to us, will provide us with excellent opportunities to continue our passion for bringing their music to the widest possible audience.
This must remain our reason for existence in the first place.
Inevitably there will be some gossip, criticism and cynicism about all this, but here’s what I’m saying:
fuck the haters
Let us join hands to create a more glorious era!
Let’s stay committed to the romantic mission that has driven our business since 1982 – signing and working with great music and people, cultivating our culture, making money, and providing great service.
I want to thank you again for your dedication, loyalty and passion throughout our journey together.
Head of Stefan Struever [PIAS] Germany wrote to me this week after returning from a gig at Nick Cave, simply saying: “Oh my gosh, do I love my job?”
I feel the same way and hope you do too.
all is well
kennyglobal music business
