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Mushroom Records was an Australian record company formed by Michael Gudinski and Ray Evans in 1972. After its sale in 1998, it merged into Festival Mushroom Records. As of 2006 it is a one of the record labels operated by the Warner Music Group.
HistoryThe label's inaugural release was an ambitious triple LP recording of the 1973 Sunbury Festival, and over the next few years they signed a number of important Australian acts of the period including Madder Lake and Mackenzie Theory. Mushroom struggled to survive for its first two years and reportedly came close to folding on several occasions, but the label was dramatically pushed to the forefront of the Australian music scene in early 1975 following the massive success of Skyhooks, whose debut album became the biggest-selling Australian LP ever released up to that time. Around the same time, Gudinksi was convinced to sign expatriate New Zealand band Split Enz, who had recently relocated to Australia. Although they had only moderate success for the first few years, Split Enz scored huge success in 1980 with the release of their album True Colours and the hit single "I Got You", which marked the emergence of Neil Finn.
After selling 49% of the company to News Corporation in 1993, Garbage signed to the label via Marshall's UK operation, followed by Pop Will Eat Itself, Ash and Peter André. Gudinski sold the remaining 51% share of the label to News Corporation in 1998 for a sum reported to have been around AU$40 million. However, the sale of Australia's last major independent label to a multinational engendered some adverse publicity, with Gudinski controversially claiming that he had sold the label as a protest at the federal government's changes to the regulations governing the parallel importation of recordings. Gudinski maintained control of most other Mushroom Group companies (including interests in music publishing, film production, band booking, national touring and venue management) and the name Mushroom Records. When Mushroom was merged with News Corporations's record label Festival Records to form Festival Mushroom Records in 1998, Gudinksi relaunched Liberation Records.
A&E RecordsWith the reorganisation into Festival Mushroom Records, a number of international operations and joint ventures were either shut down or sold. In the United Kingdom, the British arm of the company (including Infectious and Perfecto Records) was reorganised as A&E Records and sold on to the Warner Music Group when Korda Marshall took a position within that company. Selective list of Mushroom Records signings
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