Universal Music Group Secures Complete Ownership of [PIAS] Group, Expands Label Services

by  EVENTFAQS Bureau Industry Watch | October 16, 2024 | News

Universal Music Group [PIAS] Group

Universal Music Group (UMG) announced the completion of its acquisition of the remaining 51% of the [PIAS] Group. UMG had initially acquired 49% of [PIAS] in 2022, following a strategic alliance formed between the two companies in 2021. The financial terms of the transaction were not disclosed.

Through this acquisition, UMG has integrated two core business divisions from the [PIAS] Group: Integral, a label services division providing physical and digital distribution to independent labels, and the [PIAS] Label Group, which includes record labels such as Play It Again Sam, harmonia mundi, Demain, Spinefarm, and partner labels like ATO, Heavenly, Mute, and Transgressive.

As part of the acquisition, [Integral] will merge with UMG’s Virgin Music Group, further expanding UMG’s label services operations. Meanwhile, [PIAS] Label Group will continue to operate as a separate and fully autonomous division, becoming a Virgin Music Group/[Integral] client.

Kenny Gates, co-founder of [PIAS], will remain CEO under a new long-term contract and will continue to lead the [PIAS] Label Group. He will also join the board of Virgin Music Group. Co-founder Michel Lambot will step down from his current role but will remain as an advisor to the company.

Michel Lambot, Co-founder of [PIAS] added, “Our initial agreement with UMG in 2021 was always going to be a learning experience for both parties in terms of how we could align our individual cultures and whether that would work. If I’m honest, I did have some concerns as to whether it was even possible, but I’m happy to say I was wrong – our two companies have lots in common, including teams that share a real passion for music, and our relationship to date has been fruitful, convivial, and everything we hoped it would be. This new phase, which will see us working even closer together, promises to be an exciting new era for [PIAS], our staff, our partners, and the artists we represent.”

Kenny Gates, Co-founder of [PIAS] said, “I am selling my shares, not my soul. Since agreeing a strategic alliance with UMG in 2021, we have found them to be supportive and engaged partners who have added real value to our offering. The decision by myself and Michel to relinquish our remaining shareholdings in the company is a pragmatic one that will allow us to offer a truly global distribution and services platform to the independent music community. Our existing leadership team will continue to steer our day-to-day work, and nothing will change culturally or commercially for our existing clients and partners; we will still maintain the same values that we have lived by since our launch over 40 years ago.”

Lucian Grainge, Chairman and CEO of UMG, stated, “I’ve known Kenny and Michel for decades, beginning in the 80s when we were all signing bands from emerging scenes in Europe. Since that time, Kenny and Michel have built [PIAS] into a company that stands for authenticity and the best in independent music. And it is those qualities that are not only important to me personally but that also make [PIAS] a perfect fit for UMG’s entrepreneurial and creative culture.”

Boyd Muir, Universal Music Group’s Executive Vice President, Chief Financial Officer, and President of Operations, added, “We are delighted by all that’s been accomplished over the past three years together, and we look forward to working with Kenny and Michel and their entire team, including their family of artists and labels, to further build [PIAS]’s legacy. Their experience and insights have significantly helped to grow this dynamic area of our business. Completing the acquisition of [PIAS] Label Group and Integral reinforces our best-in-class label services operations and enhances our ability to support the independent artist and label community globally.”

JT Myers, Co-CEO of Virgin Music Group, commented, “In [PIAS] and Integral, Kenny and Michel have built a truly world-class operation and executive team. We are looking forward to working closely with them to build on their great tradition of serving music entrepreneurs around the world.”