When ACME Music Group signs new deal with Disney Music Group

ACME has signed a new five-year agreement with Disney, the entertainment conglomerate confirmed on Monday.

The company said it would be an “open-end partnership”, meaning it could be renewed and expanded, and would not be subject to shareholder voting.

It will be an open-end, global agreement, meaning it is subject to any shareholder action and decisions in our industry, ACME said.

The deal, which is expected to be completed in the first half of 2019, is worth $US1.3 billion ($1.4 billion) and includes a further $US250 million to be allocated to Disney Music’s Australian operations, which have been struggling to recover from the financial effects of the financial crisis.

In a statement, ACNE said the new agreement with the entertainment giant would give it “a strategic presence in the music industry”.

The announcement comes as the entertainment company, which has a 50 per cent stake in Australian independent artist and musician Matt Hardy, faces mounting pressure to take action on the growing number of performers facing legal action over the conduct of their music performances.ACME said it had “strongly advised” ACME on the terms of the agreement and would “continue to cooperate with our board on the development of our business”.

The Australian Securities and Investments Commission has been conducting a multi-year investigation into allegations that ACME misled investors, regulators and regulators in a series of recent transactions.ACNE also said it expected to file its own claim against Disney Music on Tuesday, alleging that the company “abuses its dominant position in the Australian music industry” by “engaging in an unfair and deceptive business practice”.



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