Does the EMI Deal Make Universal Music More Powerful than Apple?

In an auction that split EMI Group into two for $4.1 billion, Vivendi Sa Adr (VIVHY.PK) won the right to purchase the company’s recording division from Citigroup (NYSE:C) for $1.9 billion.

For the other half of the company, Sony Corporation (NYSE:SNE) along with other parties including The Blackstone Group L.P. (NYSE:BX) will acquire the publishing arm for $2.2 billion. From the increased dominance of each group, regulators are expected to carefully review the transactions.

If the deal is approved, this will increase Universal Music’s dominance in recorded music and catapult Sony as the top music publisher. It will also give Universal Music negotiating power over artists and distributors of music — even more so than Apple Inc.’s (NASDAQ:AAPL) dominant iTunes.

Here’s how these music related stocks are trading on the news:

  • Citigroup, Inc. (NYSE:C): The shares recently traded at $28.95, down $0.38, or 1.3%. Its market capitalization is $84.64 billion. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 667,416 shares versus a 3-month average volume of 56,235,300 shares. The company’s trailing P/E is 7.72, while trailing earnings are $3.75 per share. The company pays a dividend of $0.04 per share for a dividend yield of 0.10%. About the company: Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world. The Company’s services include investment banking, retail brokerage, corporate banking, and cash management products and services. Get the most recent company news and stock data here >>
  • Sony Corporation (NYSE:SNE): The shares recently traded at $17.74, up $0.2, or 1.14%. Its market capitalization is $17.80 billion. They have traded in a 52-week range of $16.91 to $36.97. Volume today was 50,399 shares versus a 3-month average volume of 1,241,520 shares. The company’s trailing earnings are $-4.63 per share. About the company: SONY CORPORATION manufactures audio, home video game consoles, communications, key device and information technology products for the consumer and professional markets. The Company’s other businesses include music, pictures, computer entertainment, and online businesses. Get the most recent company news and stock data here >>
  • The Blackstone Group (NYSE:BX): The shares recently traded at $14.20, down $0.19, or 1.32%. Its market capitalization is $6.81 billion. They have traded in a 52-week range of $10.51 to $19.63. Volume today was 18,879 shares versus a 3-month average volume of 4,221,570 shares. The company’s trailing earnings are $-0.35 per share. The company pays a dividend of $0.40 per share for a dividend yield of 2.80%. About the company: The Blackstone Group LP is a global alternative asset manager and provider of financial advisory services. The firm’s asset management businesses include the management of corporate private equity funds, real estate funds, mezzanine funds, proprietary hedge funds and closed-end mutual funds. Blackstone also provides M&A and reorganization advisory, as well as private placement services. Get the most recent company news and stock data here >>
  • Apple Inc. (NASDAQ:AAPL): The shares recently traded at $385.07, up $0.45, or 0.12%. Its market capitalization is $357.89 billion. They have traded in a 52-week range of $297.76 to $426.70. Volume today was 335,228 shares versus a 3-month average volume of 20,651,000 shares. The company’s trailing P/E is 13.91, while trailing earnings are $27.68 per share. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers. Get the most recent company news and stock data here >>

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