Full Article on Financial Times U2/GH Deal

Dana Susanne White ([email protected])
Sat, 05 Sep 1998 07:04:39 -0700

Not meaning to take traffic away from Kuifje's site, but I had to check out
the whole article - and he's certainly right. Way to go with the up-to-date
info. You can do the same at http://www.ft.com/hippocampus/q899aa.htm (if
you're a registered member. If not, just go to http://www.ft.com and sign
up). I've also converted it into .txt, because the article on the site is
one of those you can't just cut and paste (probably to prevent little imps
like me), and placed it below (it isn't really as altruistic an act as it
seems - I've had about six cups of coffee and I'm up, hyper, and bored at
six am. :-).

Dana.

. . .we have existence and that's all we share. . .

------

[FT.com]

 SATURDAY SEPTEMBER 5 1998
2 sign $50m archive deal
By Alice Rawsthorn
                                                            
                U2, one of the world's most successful rock groups, has
reached one of the most lucrative deals in the music industry, with
PolyGram, its record company, which is expected to earn the
band more than $50m in advances.
      
                The three-album deal, scheduled to be signed early next
week, will allow PolyGram's Island Records subsidiary to release
three Best Of U2 albums. The first, including recordings from
1980 to1990, goes on sale in November.
       
                Other superstars, such as Madonna and Janet Jackson,
have clinched $50m-plus contracts but they have covered new
material, rather than back catalogue.
                Paul McGuinness, U2's manager, clinched the deal for
the four-member band against the backdrop of the $10.4bn
takeover bid for PolyGram by Seagram, the Canadian drinks and
entertainment group.
               Seagram agreed the takeover with Philips, the Dutch
consumer electronics company that owns 75 per cent of PolyGram,
in May.
                However, it has had to postpone completion until it has
secured clearance from the European Commission, now expected
in late October.
                PolyGram's trading performance has deteriorated
because of the unsettled state of its executives and recording artists
since Seagram unveiled its surprise bid.
                Seagram is anxious to prevent PolyGram's condition
worsening before it takes control. Philips needs to stabilise it to
avert a further reduction in the bid price. It has already had to
accept a $200m cut in Seagram's original offer.
                The November release of an album by U2, which has
already sold more than 87m albums, is guaranteed to bolster
PolyGram's performance during the vital pre-Christmas sales
period.
                The U2 deal is well-timed for Seagram. A large part
of the $50m advance is payable to the band on signing the contract
next week, when PolyGram will be under Philips' control.
              
                However, the first of the three albums goes on sale in
November, after Seagram expects to have assumed ownership.
      
  
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