Universal Ups Stakes In Turkish Venture, Labels

ISTANBUL-Universal has acquired the remainder of the equity in its joint venture with Turkish indie group Raks Müzik and increased the stakes it holds in Raks' own affiliated labels.
Under the deal, Universal boosts its holding in the joint venture, Universal Music Turkey (formerly PolyGram Plaza), from 51% to 100% and in Nes¸e Müzik, Mars Müzik, and S Müzik from 25% to 51%. Raks Müzik continues to hold the remaining equity in the labels.
According to a Universal statement, all four labels will retain separate identities under Universal Music Turkey CEO Sevket Gözalan, who now also becomes CEO of the three sister labels.
Jorgen Larsen, chairman/CEO of Universal Music International, says the changes represent "an important step in our continued geographic expansion."
PolyGram bought 25% stakes in the labels in January 1997 and upped its stake in the then Plaza Müzik to 51% last year (Billboard, July 25, 1998). The changes make Universal the largest music group in Turkey.
Gözalan says, "We're going to refine, restructure, and reorganize to get the best possible synergies between an internationally minded company and a "local,' Turkish-oriented company." The deals, he adds, are effective May 1.
According to Gözalan, the four labels-which claim to account for 50% of Turkey's sales of local repertoire-accounted for 85% of Raks' revenues in 1998. The company also has radio and TV interests.
The four companies also distribute music in the Turkish-speaking former Soviet republics of Azerbaijan and Turkmenistan and in European countries with significant Turkish populations, such as Germany. Raks Müzik's top-selling artists include Ibrahim Tatlises (S Müzik) and Muazzez Ersoy (Nes¸e Müzik).
Says Gözalan, "One of our main priorities will be increasing the presence of international repertoire in Turkey, as this accounts only for 10% of the market at the moment, and we want that to change by investing more in promoting international artists. We will also maintain the good relationships we have with radio stations and music TV stations, as everything becomes far more professional."