Warner Music Australia yesterday acquired Australian independent record company Festival Mushroom Records - well, I say independent, it was owned by Rupert Murdoch's News Corp.
The media conglomerate put FMR up for sale earlier this year. Warner Music was always a hot contender to acquire the label. The major was already the independent's distributor in Australia, and Warner Music UK bought the London branch of Mushroom Records back in 2003. However News Corp are said to have had discussions with the Australian wing of SonyBMG and Richard Branson's V2 before proceeding with the Warners deal.
The deal, estimated to be worth A$5-10 million, will need clearance from the Australian Competition Consumer Commission but, assuming that is granted, the merger should formally take place before the end of the year. In fact preparations have already been made for that merger with Warner recently hiring the MDs of FMR in both Australia and New Zealand for senior A&R and marketing roles at their Sydney offices.
What the merger means for the independent's staff and roster, which includes Kylie Minogue in Australia, is as yet unclear. Statements from Warners chiefs about the acquisition were upbeat but non-committal. Ed St John, CEO of Warner Music Australia, told reporters: "We are absolutely delighted to acquire this iconic Australian music company. FMR and its foundation labels have been the home for Australian music since the dawn of our industry."