UMG GAME FOR FAME HOUSE

Universal Music Group has acquired digital marketing agency Fame House, which SFX Entertainment was selling through bankruptcy court.

UMG’s Commercial Services division paid $1m for the company, according to multiple reports, and will also take on about $400k in debts and liabilities. SFX purchased Fame House in 2013.

Fame House, founded in 2011 and known for its work with Eminem, Pearl Jam and Electric Zoo, will remain based in Philadelphia. CEO and founder Mike Fiebach and Eric Hahn, Chief Strategy and Marketing Officer, will continue to lead the agency, reporting to UMG EVP/CFO Boyd Muir and EVP Michele Anthony.

UMG made the acquisition to create commercial opportunities for its artists and labels through social media, consumer engagement, direct-to-consumer and direct-to-fan initiatives, as well as activations for brands, sponsors and live events.

“Fame House will provide digital marketing services and social media expertise for our artists and labels to build fan engagement and reach new audiences through compelling direct-to-consumer and merchandising experiences, as well as create activation opportunities for brands and sponsors and for our live events,” Anthony said.

“UMG’s acquisition of Fame House is further evidence of our evolution into a multifaceted entertainment company that can provide a broad range of services for artists beyond recorded music, publishing and merchandising,” Muir added.

Fiebach chimed in by thanking the UMG management team for “recognizing the potential of Fame House and for giving us this incredible opportunity. With the resources and support of the world’s leading music company, the sky is now the limit.”