Thom EMI Buys Virgin

Rip It Up, Issue 176, 1 March 1992, Page 4

Thom EMI Buys Virgin

Britain's Thom EMI have purchased the Virgin Music Group for 510 million pounds and will also repay up to 50 million pounds of the Virgin music

group's borrowings on completion of the purchase. Virgin founder Richard Branson commented, "I am delighted that we have managed to reach an agreement with a British Company and that the artistic independence of Virgin Records is guaranteed."

Branson will continue as President of the company for life and Virgin's key executives Ken Berry and Simon Draper will stay with the Virgin Music Group. Branson intends to devote

more time to his travel ventures such as Virgin Atlantic Airways. The Virgin song publishing company Virgin Music Publishers is part of the sale but Virgin's Retail Division is not part of the deal. Industry observers have speculated about the sale of the Virgin group for several years but rumours escalated when Virgin recently signed Janet Jackson and the Rolling Stones, mega-deals that appeared designed to enhance the label's value in the

shortterm. USA magazine Request commented early this year, "Virgin chief Richard Branson may be more interested in selling his label than the next Rolling Stones or Janet Jackson record.

Virgin is the last of the medium size multi-national record companies to be sold to a major company. In recent years Chrysalis, A&M and Island have been purchased by majors. To avoid losing the Virgin identity, it's likely that Virgin will be given a greater degree of autonomy than those other indie labels whose independence and A&R have dissipated since their sale to major corporations.