Business Matters: Is EMI Going To Citigroup Sooner Than Later?

Is Terra Firma Handing Over EMI to Citigroup Sooner Than Later?

Terra Firma may hand over EMI to Citigroup within weeks and buyers have been lined up for its recorded music and publishing divisions, according to a weekend report in The Guardian.
A source at Citi says Terra Firma’s investors do not want to invest any more funds in EMI. Without additional funds Terra Firma would likely be unable to meet its debt requirements. While Citi would normally not take over EMI until March, The Guardian says Terra Firma is considering a quick exit strategy.
One should note that The Guardian was the only paper over the weekend reporting this news. As such, the best way to interpret this news is to consider it possible at best that Citi could take over EMI in a few weeks.
Media reports have offered clues about possible suitors for EMI’s two divisions. Conventional wisdom has long said that Warner Music Group is the most likely acquirer of its recorded music division. However, a recent comment by BMG Rights Management’s CEO, Hartwig Masuch, indicates the company known best for music publishing is also interested in the recorded music division. “We are increasingly moving into representing master catalogues and EMI is the iconic catalogue,” he told MusicWeek last month.

By Glenn Peoples (The Guardian)

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