AfterDawn: News

Record label EMI faces bank takeover due to debts

EMI, one of the "Big 4" record labels, appears to be on the brink of being taken over by banking behemoth Citigroup after failing to sell off its North American artist distribution rights to other labels.

The label was looking to sell those artist rights to Sony and UMG for $300 million USD, but the negotiations broke down after the two sides could not agree on the price.



EMI, for its part, has a catalog with mega-stars such as Coldplay, Pink Floyd and some of The Beatles tracks.

Now, EMI must raise $180 million USD by June 15th, or face being taken over by creditor Citigroup, which will likely break up the label and sell all its assets to the highest bidders.

EMI was purchased in late 2007, right before "the Great Recession," for over $7 billion USD by Terra Firma Partners, which now owes Citi over $5 billion over the course of the following years.

Written by: Andre Yoskowitz @ 1 Apr 2010 23:49

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• 10 comments

• ivymike

  RIP EMI - That's Rest In Hell or Good Riddens.

  2.4.2010 00:40 #1

• elbald90

  see ya
  

  2.4.2010 04:24 #2

• creaky

  Shame, my heart bleeds. All the big corps are owned by the banksters anyways
  

  
  
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  2.4.2010 06:11 #3

• llongtheD

  Well this is like losing an appendage. From what other branch of the corporate music tree am I going to get my "pop" music from now?
  Its a sad day for all.
  

  If your fish seems sick, put it back in the water.

  2.4.2010 06:43 #4

• jjziman

  so sad. wait no. Hoot Hoot!!
  

  2.4.2010 12:03 #5

• fanlayer

  There won't be too many people upset about this one!
  

  2.4.2010 12:32 #6

• stuntman_

  http://www.youtube.com/watch?v=kjbie1O1jxc
  

  
  
  
  

  2.4.2010 13:28 #7

• john_swan

  CitiBank and EMI would be an awesome merger. CitiBank would supply money. EMI would spend the money.

  2.4.2010 15:34 #8

• Josipher

  who says there's no karma :)
  

  mods go home

  2.4.2010 17:29 #9

• nintenut

  While I'm somewhat glad to see one of the biggest asshole companies in the industry go under, a lot of great artists were, unfortunately, signed to them.
  Here's hoping they'll be able to sell their own music in the future, without it being sold to some other piece of crap they don't like.
  

  
  

  2.4.2010 21:25 #10