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Warner Music Buys Festival Mushroom
Iconic Australian record label Festival Mushroom Records is being sold to Warner Music.
Festival Records was founded in Australia in 1952 and became part of News Ltd in 1961.
The company took over Mushroom Records in the late 90s after acquiring a 50% share of Mushroom in the early 90s. Mushroom's roster included Paul Kelly, Split Enz, Skyhooks, Kylie Minogue, Jimmy Barnes and Hunters and Collectors.
In commenting on the acquisition, Ed St. John, President and CEO, Warner Music Australasia said "we are absolutely delighted to acquire this iconic Australian music company. FMR and its foundation labels have been the home for Australian music since the dawn of our industry. Joined with Warner's own roster of local acts - which stretches from Thirsty Merc and Evermore through to The Whitlams and Cold Chisel - and with the creative drive of Michael Parisi, this company will have a leading domestic music division. The growth and continued success of Warner Music Australia is going to be built around the development of a truly outstanding domestic music roster."
The announcement comes just weeks after FMR Managing Director Michael Parisi resigned to take up the position of Warner Music President of A& R. "This is a unique situation, to say the least. Having run FMR as Managing Director, and having just accepted an offer to move over to Warner Music to become President of A&R, I now have the opportunity to effectively keep both jobs. I can continue to work with the many wonderful acts I signed to FMR whilst also working with Warners' roster of artists. I'm really looking forward to working with Ed and his team to integrate the two companies and join our artist rosters."
The deal is expected to be finalized before the end of 2005 pending approval by the ACCC. An announcement about the artist roster and staffing levels is yet to be made.
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