EMI CMG Acquires Gotee Percentage

EMI CMG, a leading Christian music company, announced today that it has signed a letter of
intent to acquire a twenty-five percent interest in Gotee Records, according to Bill Hearn, President and CEO of EMI CMG.
Gotee Records, whose roster includes Jennifer Knapp, Out of Eden, Relient K, the Katinas and John Reuben among others, will
remain independent and under the leadership of CEO Toby McKeehan and President Joey Elwood. EMI CMG expects to close this
transaction within 90 days.
“Our investment in Gotee Records represents tremendous belief in Toby, Joey and the Gotee staff and artist roster. We want to do
everything we can as a company to help them fulfill their mission and grow their business,” said Hearn.
McKeehan and Elwood, and former partner, Todd Collins, established Gotee Records in 1994, setting up shop in McKeehan’s
basement. The label’s first release was a maxi-single from Out of Eden. Today, the critically acclaimed roster includes nine artists who
have released 35 albums in eight years, with sales averaging more than 120,000 units per release. Gotee’s offices are located in
Franklin, Tenn.
McKeehan commented: “Joey and I feel like we’ve built Gotee into a creative artist driven boutique label, but we have visions of taking
the label to the next level of success. Inviting EMI CMG to invest in Gotee provides us with a larger family of resources to draw from
without changing the personality and vibe we have created at the label. Because we already have a solid established relationship with
the leadership at EMI, this was a natural progression. For us, it will be like having a big brother that wants to see us achieve our goals.”
The expanded relationship will include a long-term extension of the distribution agreement with Chordant Distribution, EMI CMG’s
distribution arm. EMI CMG will also provide corporate finance and business affairs support to the label. Gotee’s publishing interests are
not a part of the acquisition, but EMI Christian Music Publishing will continue to be the exclusive administrator of Gotee’s publishing
catalog.
In addition to the corporate services provided by EMI CMG, Greg Ham, President of EMI CMG’s ForeFront Records and Elwood will
work together to create a shared sales and retail marketing department leveraging the strengths of each label’s repertoire. Gotee’s
Troy Collins has been named Senior Director, sales and retail marketing, to head that effort.
“With the record business environment changing so rapidly, the challenge is to figure out ways to remain profitable, and yet stay
creatively relevant,” said Elwood. “After a lot of consideration, Toby and I realized that lining up our company with the strongest
business unit in our industry can provide us with the kind of quality infrastructure we need to continue our growth. Consolidating a
sales team with Forefront is just one example of the synergy we can create going forward. This relationship will not only serve to
strengthen our entire company, but enable us to better serve our artists and employees.”
Brentwood, Tennessee-based EMI CMG was founded in 1994. It is the world’s largest Christian music company, operating the
Sparrow, ForeFront, Worship Together and EMI Gospel labels in addition to EMI Christian Music Publishing and Chordant Distribution
Group. EMI CMG’s recording artists include Steven Curtis Chapman, dcTalk, Newsboys, Audio Adrenaline, Rebecca St. James,
Delirious, Avalon, ZOEgirl, Stacie Orrico Jump5 and more.
EMI CMG is a unit of EMI, the world’s largest independent music company, operating in nearly 50 countries around the world. Its record
labels include Angel, Blue Note, Capitol,

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