Universal Music Officially Purchases Remaining [PIAS] Shares

Independent no more: Just shy of two years after selling a minority stake to Universal Music Group (UMG), [PIAS] has parted with its remaining shares in a new deal with the leading label.

UMG reached out with a formal announcement message but has thus far opted against providing additional details (including price-tag specifics) about the transaction. In any event, November of 2022 had seen the major scoop up a 49% interest in the self-described “family of independent record labels” [PIAS].

And now, the co-founders of this London-headquartered label family, Kenny Gates and Michel Lambot, have opted “to sell the remaining shares they hold in the company,” UMG spelled out.

As to the post-purchase organization, [PIAS] is set to roll its [Integral] distribution unit into UMG’s Virgin Music Group. At least for the time being, the labels behind [PIAS], including but not limited to the namesake Play It Again Sam (PIAS) and Spinefarm, will in Universal Music’s own words “remain completely autonomous.”

Next, the aforementioned [PIAS] head Kenny Gates has inked “a long-term contract to remain as CEO” and will also sit on Virgin Music Group’s board, the purchasing party communicated.

“I am selling my shares not my soul,” relayed Gates, who established [PIAS] more than four decades ago. “Since agreeing [to] 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,” the exec proceeded in part.

While the text doesn’t come right out and acknowledge co-founder Michel Lambot’s role moving forward, the longtime exec, who’s also CEO of a company called Emotions, appeared to indicate that he’ll remain part of [PIAS].

“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,” the Strictly Confidential chairman and former co-president relayed.

Taking a step back, UMG’s deal for the remaining piece of [PIAS] marks the latest in a long line of indie-focused consolidations from the majors. In the end, Artists Without a Label (AWAL) did, in fact, see its acts find a label – and the second-largest label in the world at that.

The Orchard owner Sony Music announced the $430 million AWAL purchase in 2021, and the transaction cleared regulatory hurdles the following year. Bringing the focus closer to the present, it was only earlier in 2024 that Warner Music Group made a serious play for Believe.

However, the acquisition-minded WMG ultimately abandoned the takeover attempt, thereby removing a massive obstacle for Believe on the road back to private ownership.

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