Chapter 1124: Prey of the Universal Music Group

Wang Zhang answered truthfully, 'Chairman, with the help of the resources of the entire group, Universal Music has now developed into a large music group covering the entire industry chain. It already has 15 branches and has a considerable influence in many countries in Asia.'

'Last year, the company's total revenue reached 393 million Hong Kong dollars, and net profit reached more than 150 million Hong Kong dollars.'

'In the past five months of this year, the company has already achieved revenue of 236 million Hong Kong dollars, a year-on-year increase of more than 35%, and it is still maintaining a relatively high growth rate...'

'In Hong Kong, our company occupies 47% of the local record market, 11% higher than the second-placed PolyGram, ranking first...'

Wang Zhang gave a very detailed account of the situation of the Universal Music Group. He could name every piece of data about the company as if he knew it by heart, which showed that he really knew the company inside out, and this made Xia Yu very satisfied.

Of course, from the market share data, Xia Yu also understood the current situation of the Hong Kong recording industry. It can only be said that PolyGram was worthy of being the previous overlord. Faced with Universal Music, which had developed with the help of consortium resources, although it had been surpassed in the Mandarin recording market, it still had the strength to compete head-on.

In fact, if Universal Music Group's revenue is used as a basis, and if the stock market is favourable when it is listed, the market value will reach at least 1 billion Hong Kong dollars. Even if it cannot enter the top 100 in Hong Kong, it will be able to enter the top 150.

Such a leading enterprise in the music industry is still just a subsidiary of Global TV.

It didn't matter when it was weak, but now, in order for Universal Music Group to develop better, it should be brought up separately, and at least be on the same level as Global TV and Galaxy Studios.

First, he gave a summary: 'I understand the situation. You have all managed your own companies very well, and I am very satisfied.'

'However, Universal Music Group has reached its limits, so starting today, Universal Music Group will become independent from the TV station and become a first-level subsidiary of Jiuding Culture Media Group, on the same level as Universal TV.'

'Xizhao, do you have any objections?'

Huang Xizhao was feeling down, but he didn't dare show it in the slightest, and he shook his head vigorously and said, 'Chairman, I have no objections. I have not interfered with the management of Universal Music Group before. With the size of Universal Music Group, it is indeed inconvenient for it to continue to be placed under Global TV.'

'Well, it's good that you can let go,'

Xia Yu said with a smile.

This was also the purpose of calling Huang Xizhao over today, to tell him in person, at least it would not be too much of a blow to his motivation, and it would also prevent him from thinking irrationally.

Then Xia Yu looked at Wang Zhang, who was trying hard to suppress his emotions, and said with a smile, 'Wang Zhang, your rank will be raised by one level and you will become a director of Jiuding Culture Media Group. Your responsibilities will be much heavier.'

Wang Zhang immediately got up, bowed deeply to Xia Yu, and said gratefully, "Thank you, Chairman, for promoting me. I will definitely continue to work hard and do my best to run the company well.'

Xia Yu raised his hand and said softly, "Well, that's enough. Sit down and let's talk. I have something else to tell you.'

Wang Zhang sat down again, sitting upright and respectfully waiting for Xia Yu's next instructions.

Xia Yu looked Wang Zhang straight in the eye and said in a slightly serious tone, 'In the next two months, the company will make big moves in the record market, and will acquire some large European and American record companies.'

'After these record companies are acquired, they will be merged into the Universal Music Group, which will definitely have a certain impact on the company.'

'At that time, whether those record companies that have been acquired will nominally belong to the Universal Music Group or whether they will be able to carry out resource integration in all aspects will depend on your abilities.'

'So in these two months, you must prepare in advance to avoid being caught off guard and making mistakes that will affect the strategic plans of other companies, understand?'

Wang Zhang could not help being shocked. His face was solemn as he nodded heavily and said, 'Chairman, I will definitely do my best!'

'Well, I'll be waiting to see how you perform,'

Xia Yu said softly.

'That's all. Do you have anything else to tell me?'

Huang Xi and Wang Zhang glanced at each other and both shook their heads.

'Okay, you can go back first.'

'Wang Zhang, especially you, if you find any difficulties, tell Fok Kin-ning as soon as possible.'

'Yes, Chairman!'

'Well, go!'

After that, Huang Xi and Wang Zhang left, and Xia Yu vaguely heard Huang Xi's congratulations to Wang Zhang.

...

The next afternoon.

Yan Wenhan brought over the compiled information on the global record market. Xia Yu briefly chatted with him for ten minutes, then told him to put the information down and go about his business.

That afternoon, Xia Yu didn't go anywhere, and stayed in the office the whole time, checking and sorting out the situation of the global record market.

It wasn't until almost time to go home that Xia Yu finally got a clear picture of the situation.

PolyGram International is indeed the world leader in the music industry, but that doesn't mean it has no competitors. For example, Warner Music Group, which is second in the global music market, is only slightly weaker than PolyGram International.

Of course, there are also many other music giants, but unlike PolyGram International, they are not as global and are more active in individual countries or continents.

For example, in the UK, there is the music giant EMI, which is able to compete with PolyGram International in the UK.

Founded in 1897, EMI was formerly known as the British Gramophone Company and the British Columbia Phonograph Company. In 1931, the two record companies merged to form EMI.

EMI then carried out a series of mergers and acquisitions, expanding its business to other countries. For example, in 1955, it acquired Capitol Records, which is now one of the top ten record companies in the United States, and later acquired a number of record brands such as Apple, arlophone, Liberty, and BlueNote.

I remember that in its previous life, EMI continued to merge and acquire other companies, and at one point it became one of the world's top five record companies. However, its copyright department was later eaten up by Sony Music Group, boosting Sony Music Group's copyright library to over two million titles, making it the world's number one; while the record department was sold by France's Vivendi Group to Universal Music Group.

In the United States, there are even more major record labels. Some media outlets have even ranked the top ten record labels in the United States, such as Warner Bros. Records, Columbia Records, Capitol Records, RCA Records (American Broadcasting Company Records), Atlantic Records, Epic Records, Roadrunner Records, Fueled by Ramen Records, A&M Records and Mercury Records.

However, of the top ten record companies in the United States, only one is an independent record company, and that is A&M Records.

Of the remaining nine record companies, Warner Bros. Records, Atlantic Records, Roadrunner Records, and Fueled by Ramen are in the same group and are all brands under Warner Records.

RCA Records belongs to the American Broadcasting Company (ABC), one of the three major television networks.

Columbia Records belongs to CBS, one of the three major television networks.

Mercury Records belongs to PolyGram International Limited.

And Capitol Records, the last one, belongs to EMI.

...

In Xia Yu's plan to build a record empire, he set two fulcrums: one is the United States, which radiates to South America and North America.

The other fulcrum is the United Kingdom, which radiates to Europe, Africa and Oceania.

Finally, he determined the acquisition targets.

In the UK, he acquired EMI, Virgin Records and Island Records.

Virgin Records was founded in 1973, but it now owns the Rolling Stones and Phil Collins.

EMI spent one billion dollars to acquire Virgin Records in the early 1990s.

As for Island Records, it was founded in Jamaica, and although its main business is in the UK, it also has a significant presence in Africa. Its current representative is the rock band U2.

In the UK, acquiring these three companies is enough to temporarily counter PolyGram International Limited on a European scale. In the US, there is also Capitol Records, one of the top ten record companies in the US, not to mention Xia Yu will also find a way to take a stake in PolyGram International Limited.

Then there is the American side.

Among the top ten record companies in the United States, Xia Yu is preparing to let Peter Lynch acquire A&M Records, Epic Records, and RCA Records.

A&M Records is an independent record company, and it was later acquired by Universal Records. It is now being acquired by Xia Yu's Universal Music Group, which is just right.

Epic Records is backed by a major Wall Street bank, and in the future this company will also be one of the three major faces of the Sony Music Group. Right now, this record company has a treasure, and that is Michael Jackson, and Michael Jackson is just in the process of producing his sixth album, Thriller, which is scheduled to be released at the end of this year.

Yes, Thriller is the album that set a Guinness World Record for global sales of 65 million copies. Therefore, Epic Records is about to reach its peak, and if it can be acquired now, it will definitely be a huge gold mine.

As for RCA Records, although it is owned by the American Broadcasting Corporation, the acquisition is highly likely to succeed, because the parent company of the American Broadcasting Corporation is none other than General Electric Company.

Xia Yu's Polaris Capital now holds 14.6% of General Electric Company's shares, making it one of the major shareholders of General Electric Company.

With this relationship, it will be very difficult to acquire a subsidiary of a subsidiary of General Electric Company.

If this plan can be realised, Xia Yu's Universal Music Group will own four of the top ten record companies in the United States, tying with Warner Music Group and becoming one of the two poles of the American record industry. PolyGram International Limited is not Universal Music Group's rival in the United States.

As for Sony's half-owned Columbia Records, it is even less able to compete with Universal Music Group.

At that time, the global record market will change from a two-way battle between PolyGram International Limited and Warner Music Group to a three-way struggle.

And Universal Music Group will be the strongest of the three in terms of strength and influence!