EMI 'Planning Back Catalogue Sale'
- Posted on Mar 22nd 2010 8:10AM by Luke Slater
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Struggling music giant EMI are attempting to offload some of their financial worries in planning to lease their vast North American catalogue, according to the Times. It aims to raise around £400m ($601m) for the archive, which includes work from artists as illustrious as the Beatles, David Bowie and Queen. This will, crucially, give EMI's competitors the opportunity to manage the catalogue.Guy Hands' Terra Firma, who own EMI, believe that the funds raised by this sale would be enough to stop any imminent takeover. Citigroup are the company's lenders and are most likely group to attempt a buy-out. If EMI couldn't garner the money Hands hopes to raise with the sale of the catalogue, the bank could take over as early as June and would almost certainly put the corporation up for sale. However, Hands is currently in a legal tussle with Citi, over claims that it misled him in his takeover of EMI in 2007.
It is also believed that talks were underway with Universal Music, but have now moved onto other rivals such as Warner Music and Sony. Financially, the North American catalogue makes up the vast majority of the label division of EMI's revenue, and is thought to be worth in the region of £100m yearly in North America alone. Removing itself from that market would undoubtedly have both short and long-term effects. Citigroup is thought to have the ability to counter such a plan if it deems it not in the interests of stakeholders, the Times reported.
EMI has had a tough time in recent months, with the speculated sale of the legendary Abbey Road studios, and posting a £1bn operating loss at the beginning of last month. Earlier this month Pink Floyd, also on the label, successfully sued them over claims that it had no right to publish and sell their songs individually, except as part of full albums.
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