The world's largest record label signed a deal Thursday to acquire the identically-initialed Univision Music Group, subject to regulatory approval. Billboard points out that the deal would make Universal Music Group "the dominating company – by far – in the U.S. Latin marketplace."
Univision Music Group, founded in 2001 by a former EMI executive, already controls 40 percent of the US market for Latin music, according to Nielsen Soundscan's 2007 statistics.
Aside from giving Universal a larger catalog, control over an (admittedly massive) niche market, and a stronger negotiating position with digital music services, the deal would set into stone a longstanding agreement between the two companies that allows Universal to promote its artists on the Univision, Telefutura, and Galavision television channels.
(via billboard)
