EMI-MUTE DEAL SPEAKS LOUDLY

EMI Recorded Music has acquired leading independent record company Mute, extending an existing licensing relationship that Mute has had with EMI's Virgin for more than 15 years.

According to sources, EMI is paying $33 million over four years plus an additional $27 million to cover operating costs during that period.

Founded in London in 1978 by Daniel Miller, Mute built a reputation as a sharp-eared A&R source, signing and developing such noteworthy acts as Depeche Mode, Nick Cave & the Bad Seeds and Moby.

"It's a great sign of confidence that Daniel Miller has decided to associate his future with EMI," said Alain Levy, Chairman/CEO, EMI Recorded Music. "Daniel is one of the most respected finders and nurturers of talent in the industry, and we're incredibly proud to be strengthening the relationship."

The acquisition includes Mute’s catalog and its operations in the U.K., U.S. and Germany.

Miller, the label’s executive chairman, will continue to be responsible for all of the company's global activities. Previous to this deal, Miller owned 100% of Mute.

The new agreement was initiated by Emmanuel de Buretel, EMI Recorded Music's Chairman/CEO, Continental Europe. "This deal is a natural progression of our relationship with Mute," said de Buretel. "I believe in the independent sector. It provides the business with an immense wealth of new talent. It's a source of new musical trends and an integral part of the industry's future."