Sheridan Square Entertainment, which includes Artemis Records, Vanguard Classics, Triloka Records, Tone-Cool Records, Ropeadope and Compendia, has now acquired V2 North America and formed a new company. In addition, Sheridan Square has also formed a global partnership with V2 Group. The new company will continue to have rights to market V2's global repertoire, in which V2 Group will become the international licensee for V2 North America's titles and other product from Sheridan Square.

"The Management team of V2 North America believes that by becoming a stand alone entity in North America through the formation of a new company with Sheridan Square and retaining all the advantages of strong international ties with V2 Group, a best of both worlds scenario is realized," says V2 CEO Andy Gershon. "We will not only continue to develop a fantastic range of artists but have the key benefits of strong backing and an international infrastructure and release schedule. Releases from The White Stripes and Moby have helped make 2005 successful and 2006 is looking to be a fantastic year for us with new releases ranging from the sick, cutting edge comedy of The Aristocrats to the legendary Ray Davies and the incredibly talented Josh Ritter."

Sheridan Square Co-CEO Anil Narang commented, "We are incredibly excited about the acquisition and global partnership with Virgin's V2 Group. Sheridan Square gains access to a strong catalog and artist roster, as well as a talented management team. The ability to tap into V2 Group's global repertoire and infrastructure will enable Sheridan Square to build scale internationally, yet focus on its core strategy of rights acquisitions in North America. The deal is highly complementary, as both sides value the importance of strategic relationships in a market as difficult and dynamic as this one."

V2 was part of Richard Branson's Virgin Group, which encompasses 51 percent of the Virgin Atlantic airline, a music retail chain, financial services, health clubs and Internet and mobile phone services. Branson launched V2 after he sold his Virgin Records label in 1992 to EMI. Branson comments, "This is one of those rare win-win situations in today's difficult market for the record industry as a whole. This deal with Sheridan Square and V2 North America, and our continued presence in North America with deals such as Emusica under V2 International, will allow both companies to flourish and develop in a way that is true to their core strategies. This new relationship will allow V2 Group to concentrate on core markets of U.K./Europe and the rest of the world, and continue our aggressive catalogue acquisition strategy in the U.S. -- whilst remaining involved in a close partnership in North America. Both businesses will be free to move forward and maximize their development potential."