[PIAS] EXPANDS ALLIANCE WITH UMG
[PIAS] co-founders Kenny Gates and Michel Lambot have sold the remaining shares of their independent label and services company to Universal Music Group. The deal expands the alliance formed between the two companies in 2021, when Gates and Lambot sold a minority share to UMG.
As a result of the new sale, [PIAS]’ services division [Integral], which provides physical and digital distribution to independent labels, will join forces with Virgin Music Group. The company’s other core division, the [PIAS] Label Group, will remain completely autonomous.
The label group is home to Play It Again Sam, harmonia mundi, Demain, Spinefarm and Source and can claim partnerships with Transgressive, ATO, Heavenly and Mute. Its various imprints have recently enjoyed success with such artists as Nick Cave & the Bad Seeds, Arlo Parks, Black Pumas, Kneecap, Sofiane Pamart and Sleep Token.
“I’ve known Kenny and Michel for decades, beginning in the ‘80s when we were all signing bands from emerging scenes in Europe," said UMG Chairman/CEO Lucian Grainge. "Since that time they have built [PIAS] into a company that stands for authenticity and the best in independent music. And it is those qualities that are not only important to me personally but that also make [PIAS] a perfect fit for UMG’s entrepreneurial and creative culture.”
“I am selling my shares, not my soul," emphasized Gates (pictured at left), who signed a long-term contract to remain CEO of [PIAS] and will also sit on the Virgin Music Group main board and advisory group. "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 existing [PIAS] leadership team will continue to steer its day-to-day work and, per Gates, “Nothing will change culturally or commercially for our existing clients and partners. We will still maintain the same values that we have lived by since our launch over 40 years ago.”
“Our initial agreement with UMG in 2021 was always going to be a learning experience for both parties in terms of how we could align our individual cultures and whether that would work," Lambot reflected. "I did have some concerns as to whether it was even possible, but I’m happy to say I was wrong. Our two companies have lots in common, including teams that share a real passion for music, and our relationship to date has been fruitful, convivial and everything we hoped it would it be."
