Since taking control of the label off greedy financier Guy Hands and his Terra Firma private equity company bankers Citigroup have decided to sell off the world’s fourth largest label as a single going concern, rather than break it up in to several parts. The move will quell the concerns of staff and management at the label, which feared that a mooted breakup of the label would see its overall business harmed.
CEO Roger Faxon said to staff in an email “The press will inevitably write that EMI will be broken up and sold in pieces. So, let me say this as clearly as I can: global rights management is the future, and it takes both parts of the business working together to achieve that future. I have no doubt that the best possible way to yield the highest value for EMI is to keep our businesses together in pursuit of our strategy. As we move forward that will become evident even to the most sceptical observer. This is why I have every confidence that EMI will remain EMI for a very, very long time to come.”
Most music business pundits suggest that Warner Music is the most likely buyer for the company, although Warner itself is currently looking for buyers, with Live Nation and BMG’s private equity owners considered to be front runners.
