Sir Richard Branson has been linked with a takeover of Virgin Records, the company which launched his business empire, from Universal Music. Reports suggest Sir Richard has held talks with Patrick Zelnick, who launched the French arm of the label in 1980, with a view to supporting a bid.
Universal may be ready to dispose of Virgin Records in order to gain regulatory approval for a £1.2 billion takeover of British group EMI, the company to whom Mr Branson sold his music business in 1992. Mr Zelnik told the Financial Times (FT) that the move is a real possibility.
He said; “If Universal is ready to sell Virgin Records, then Richard Branson will support a transaction and support me in doing it. He wants Virgin to be in my hands.”
However it is believed that Sir Richard has not yet committed himself to an offer and that he may only take a small stake in the business if the deal goes ahead. A source close to the entrepreneur said; “Richard’s a good businessman. He has to see the business plan and the price before committing.”
If the deal goes ahead it would be a nostalgic return to the music business for Sir Richard who launched the company in 1970. Virgin Records began life as a mail-order service and moved into its first retail commercial property in 1972. The London store became a popular haunt for music fans who could sit around on bean bags eating the vegetarian food Branson provided.
The company’s breakthrough came with the release of Mike Oldfield’s critically acclaimed Tubular Bells in 1973. This was followed by a succession of progressive rock releases from the likes of Gong and Tangerine Dream.
In 1977 Virgin Records came to national attention when Branson signed punk rock band the Sex Pistols and released the infamous God Save the Queen, which is incorrectly remembered as the record that called the monarch a moron.
This was swiftly followed by the signing of other new wave acts such as Magazine, Human League, Simple Minds and Culture Club. At the same time Virgin Records became a familiar feature on the high street with commercial property outlets in cities throughout the country. Sir Richard eventually parted with the company to help finance the launch of Virgin Airlines.
Were you a fan of Richard Branson’s Virgin Records? Do you have a favourite from the company’s back- catalogue such as Tangerine Dream or Culture Club? Share your memories with us below.
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Interesting. Richard Branson was one of the first in the industry to grasp the commercial potential of punk rock and it’s still being marketed today. I spotted Sex Pistols aftershave in a shop last week. Seriously !!
We hope you purchased it Steve 🙂