Who Owns Capitol Music Group?

Capitol Records was founded in 1942 by songwriter Johnny Mercer, composer Buddy DeSylva, and record store owner Glenn Wallichs in Los Angeles, California. Mercer, a prolific songwriter with hits at Paramount Pictures, wanted a record label that would give artists creative freedom and fair royalties. Wallichs owned Music City, a record store on Vine Street in Hollywood, and brought retail expertise. DeSylva, a Hollywood producer and songwriter, provided industry connections and capital.

The label's first headquarters was above Wallichs' music store. Capitol's first commercial release was "Cow Cow Boogie" by Ella Mae Morse in 1942. The record sold over a million copies, establishing Capitol as a viable label from the start. By 1945, Capitol was selling 42 million records annually and had become one of the "Big Six" record labels in the United States.

In 1946, Capitol began construction of the Capitol Tower, the world's first circular office building, at 1750 Vine Street in Hollywood. The building, designed by Welton Becket, opened in 1956. The Capitol Tower became one of the most recognizable buildings in the music industry and remains Capitol's headquarters.

The 1950s brought expansion into new genres. Capitol signed Frank Sinatra in 1953, and his recordings for the label, including albums like "In the Wee Small Hours" (1955) and "Songs for Swingin' Lovers" (1956), are considered among the greatest popular music recordings. Nat King Cole became another flagship artist, with hits like "Mona Lisa" and "Unforgettable." Capitol also signed jazz artists including Duke Ellington and Miles Davis.

In 1955, EMI, the British music company, acquired 96% of Capitol Records for $8.5 million. EMI had been Capitol's international distributor since the 1940s. The acquisition brought Capitol under British ownership, where it would remain for 57 years. Under EMI, Capitol continued to operate as a semi-autonomous label with its own A&R and artist development operations.

The 1960s marked Capitol's most famous era. The Beatles signed to Capitol in the United States (EMI's Parlophone label handled their UK releases). Capitol released Beatles albums in America starting with "Meet the Beatles!" in January 1964. The album sold 3.6 million copies in two months. Capitol's Beatles catalog includes "A Hard Day's Night," "Help!," "Rubber Soul," "Revolver," "Sgt. Pepper's Lonely Hearts Club Band," and "Abbey Road." The Beatles' success made Capitol one of the most profitable labels in the world during the 1960s.

The 1970s and 1980s brought challenges. The Beatles disbanded in 1970. Sinatra left Capitol in 1962 to found Reprise Records. Capitol struggled to find replacements for these iconic artists. The label signed the Beach Boys, who had been with Capitol since 1962, and achieved success with albums like "Pet Sounds" (1966). In the 1970s, Capitol signed Steve Miller Band, Bob Seger, and Linda Ronstadt, all of whom achieved significant commercial success.

The 1990s and 2000s saw Capitol navigate the transition from physical to digital music. The label signed artists including Radiohead, who released "OK Computer" (1997) on Capitol, and Coldplay, whose debut album "Parachutes" was released by Capitol in the U.S. in 2001. However, EMI struggled financially in the 2000s, burdened by debt from private equity acquisitions. Terra Firma Capital Partners acquired EMI in 2007 for GBP 4.2 billion, but the investment proved disastrous.

In February 2011, Citigroup took control of EMI from Terra Firma after Terra Firma defaulted on loans. Citigroup began seeking buyers for EMI's assets. In November 2011, Universal Music Group announced it would acquire EMI's recorded music division for approximately $1.9 billion. The European Commission approved the acquisition in September 2012, with conditions requiring divestitures. The deal closed on September 28, 2012.

After the acquisition, UMG restructured its U.S. operations. In 2013, UMG revived the Capitol Music Group name as an umbrella for Capitol Records, Virgin Records (U.S.), Motown Records, Blue Note Records, and other imprints. Steve Barnett was appointed chairman and CEO of CMG. The reorganization moved Motown Records from New York to Los Angeles and consolidated operations at the Capitol Tower.

Under UMG ownership, Capitol Music Group signed and developed artists including Katy Perry, Sam Smith, Halsey, and Troye Sivan. Katy Perry's "Prism" (2013) and "Witness" (2017) were released through Capitol. Sam Smith's "In the Lonely Hour" (2014) was a global hit. Halsey's "Hopeless Fountain Kingdom" (2017) debuted at number one on the Billboard 200.

As of 2025, Capitol Music Group continues to operate as a major label group within UMG. The label group is headquartered at the Capitol Tower in Hollywood. Capitol remains one of the most historic and recognized names in the music industry, with a catalog spanning over 80 years of recorded music.