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The company, which evolved into Sony Music, was founded in 1929 as the American Record Corporation (ARC) through the merger of several smaller record companies.[2] In the depths of the Great Depression, the Columbia Phonograph Company (founded in 1888) in the U.S. (including its Okeh Records subsidiary) was acquired by ARC in 1934.
ARC was acquired in 1938 by the Columbia Broadcasting System (CBS) (which itself had been formed by the Columbia Phonograph Company, but then sold off). The Columbia Phonograph Company had international subsidiaries and affiliates such as the Columbia Graphophone Company in the United Kingdom, but they were sold off prior to CBS acquiring American Columbia. RCA Victor Records executive Ted Wallerstein convinced CBS head William S. Paley to buy ARC and Paley made Wallerstein head of the newly acquired record company. CBS made Columbia its flagship label with Okeh its subsidiary label while deemphasizing ARC's other labels. This allowed ARC's leased labels Brunswick Records and Vocalion Records to revert to former owner Warner Bros. which sold the labels to Decca Records. Wallerstein restored Columbia's status as a leading record company and spearheaded the successful introduction of the long playing (LP) record before he retired as Columbia's chairman in 1951. James Conkling then became head of Columbia Records.[5] Also in 1951, Columbia severed its ties with the EMI-owned record label of the same name and began a distribution deal with Philips Records. Okeh Records continued to be distributed by EMI on the Columbia label.

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