EMI fighting for survival, as buyout implodes

From Businessweek:

Pink Floyd and Queen, bands that have been with EMI Music for about four decades, may head for the door, according to two people familiar with their talks, as concern mounts about the U.K. record label’s finances.

Pink Floyd, whose catalog includes such albums as “Dark Side of the Moon” and “The Wall,” and Queen, with its best- selling single “Bohemian Rhapsody,” have met with other major record labels about leaving, said the people, who spoke on condition of anonymity because the discussions are private.

Guy Hands, whose Terra Firma Capital Partners Ltd. bought EMI for 4 billion pounds ($6 billion) at the height of the buyout boom in 2007, has until June to convince the firm’s investors to inject new capital to keep EMI afloat. Without that funding, EMI may end up in the hands of creditor Citigroup Inc. and may merge with a rival, analysts said.

“This is how a company implodes,” said Claire Enders, a former EMI executive and the head of Enders Analysis Ltd., a London-based music and entertainment research firm. EMI rivals Universal Music Group, Sony Music Entertainment and Warner Music Group Inc. are likely courting the label’s top artists such as Lily Allen and Katy Perry, she said.

Adding to the turmoil, Hands is suing Citigroup, saying the bank tricked Terra Firma into buying EMI in 2007. The company also today said EMI Music Chief Executive Officer Elio Leoni- Sceti will step down effective March 31. It asked 53-year-old Charles Allen, currently non-executive chairman, to assume the role of CEO.

Full article:
Pink Floyd, Queen May Ditch EMI as Buyout ?Implodes? (Update1) - BusinessWeek

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