What To Do With EMI?

Andrew Dubber has an interesting take on what to do with EMI's assets on his site Deleting Music.  He is suggesting the British government buy the assets from Citigroup at a fire sale price and nationalize the archives.  He argues that in the hands of the wrong people, the archives could be partially destroyed or lost.  He has a point. How many pieces of film or tape have been lost through corporate buyouts, mishandling or just plain negligence.  There is a trove of our past in those EMI archives.  I would love to be the one working on an archival project like that.  There is always the thought:  How much more stuff can they find that hasn't already been released?  I think we'd all be surprised what would be unearthed if someone had the respect for the music and the insight to archive and digitize the catalog.   I love the Beach Boys and I'd be happy to hear or see something I've never experienced. Let's hope it gets in the right hands.

Yesterday Citigroup won a legal dispute in New York against Terra Firma Capital Partners Ltd. over the U.K. firm’s 2007 acquisition of music company EMI Group. Read more at the WSJ.

EMI On Life Support, But Still Breathing

According to the Wall St Journal, Terra Firma (which ironically translates to solid earth), the private equity group that bought EMI a few years ago, has rallied another $150 million from investors to keep the entertainment company from defaulting (for the time being) to Citigroup. Who are these investors and isn't there something a little more stable or innovative they could be putting their money behind? The article goes on to say that the company will probably be split and they will sell off the different divisions, which seems about the only logical thing it can do besides slashing overpaid executive salaries.

Apple Buys EMI

This was the headline on today's Lefsetz letter. It took me a minute to ponder why Apple would want EMI, then I realized it's April 1st. EMI will probably end up a lot worse than having Apple take over. It makes no sense for Apple, but the move would probably save the hanging on by a thread music company.

EMI will sink (or be turned over to Citigroup) if it doesn't receive about $200 million by June 14. It's new executive chairman Charles Allen rejected offers from Sony and Universal yesterday for the right to license (not own) the music for 5 years. Read more at the Telegraph.