DEAG agrees Sony deal for Classics and Raymond Gubbay
Berlin-based Deutsche Entertainment AG (DEAG) has agreed a deal with Sony Music Entertainment Germany whereby it will acquire 49% of DEAG Classics AG to take full control of the company. As part of the deal, DEAG is selling its shares in UK-based show producer Raymond Gubbay Live (RGL) to Sony Music Entertainment International Limited.
No financial details were disclosed, but DEAG says its ownership stake in London-based live music promoter Kilimanjaro Live will remain unaffected, while Kili itself says it will continue to work closely with RGL as they have done for several years on events such as the Kew the Music concert series and the Kevin and Karen Dance tour – both of which will return in 2019.
Kilimanjaro are currently having their most successful year ever with over 1m fans attending the record breaking Ed Sheeran stadium tour which has just finished. They have also recently seen huge success with their Live at Chelsea concert series which features an annual fireworks prom, which this year was a musical celebration of the works of Andrew Lloyd Webber marking his 70th Birthday. Last year Kilimanjaro promoted two special performances with Hans Zimmer and looking forward to later this year Kilimanjaro will see Andrea Bocelli play two sold out shows at the O2.
The transaction represents a first step for DEAG towards successively reducing minority interests with the aim of increasing the earnings per share for DEAG shareholders.
DEAG will now own 100% of the shares in DEAG Classics AG including the shareholding in The Classical Company AG (Switzerland).
DEAG executive Detlef Kornett says, “DEAG and I am grateful for the integrity, loyalty and the tremendous success we have experienced in partnering with RGL ltd, in particular with its senior management Debra Eagers, Anthony Findlay and Jonathan Marks and their staff. We have seen through a fundamental change to the business of RGL while profitability increased in our time and the transaction allows RGL to prosper and at the same time the DEAG Classics business to continue to thrive, also in the UK.
“We are actively looking now at opportunities overall in the UK market to continue on our tremendous growth path that DEAG has started in partnership with Kilimanjaro and also Flying Music Group.”
The transaction represents a first step for DEAG towards successively reducing minority interests with the aim of increasing the earnings per share for DEAG shareholders. Proceeds of this transaction are intended to further strengthen DEAG’s position in the UK, one of its two core markets, also by investing in and increasing activities of myticket.co.uk.
Kili boss Stuart Galbraith comments, “We will continue to enjoy the full support and the opportunities of collaboration within the DEAG Group, with Flying Music Group but also with RGL in the future. There are numerous opportunities for us to grow our business which we will be able to continue to exploit.”
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