Citigroup

EMI Music Group Split For Sale

It appears that Citigroup have decided to sell individual portions of EMI Music Group according to two press releases issued yesterday.

The labels within the group will be sold to Vivendi and Universal Music Group for £1.2 Billion whilst the publishing assets of the group will be sold to an investor group that includes Sony Corporation of America, David Geffen and the estate of Micheal Jackson for $2.2 Billion (source : Citigroup press releases 111111a / 111111b).

These sales are of course subject to regulation and independent label association IMPALA expects that the sale of EMI Recordings to Universal Music Group will be “blocked outright” according to their latest press release.

Warner Out For EMI Purchase

Billboard has reported that Warner Music Group has pulled out of the negotiations for EMI.

Citigroup have allegedly renewed negotiations with Universal and Sony whilst Independent label association IMPALA filled protests about the sale with the European Commission over concerns in regards to a possible duopoly in Europe.

According to their November 8th, 2011 press release, IMPALA had preferred a sale to Warner Music Group, which they believed “could help balance the duopoly but would still need substantial remedies as it would increase the competitive gap for the independents“.

Citigroup / EMI Update

EMI has been taken over by Citigroup and now people are wondering if a merger with Warner Music Group is possible because of EMI‘s dept.

According to Billboard, Warner Music Group has a debt of $2.4 Billion whilst EMI‘s debt is $1.9 Billion.

EMI had been $5.5 Billion dollars in debt before Citigroup “recapitalized EMI through a debt-for-equity swap”.

EMI Music Group Update

The Wall Street Journal reports that Terra Firma Capital Partners, the group that owns EMI, has received their stockholder’s approval to secure a $156 Million deal that will keep Citigroup at bay for the next two years.

By next March the label will still need a restructuring plan to handle it’s significant debt and people are in the industry are still speculating on whether Sony or Warner will buy up some of the company’s assets.

Billboard Predicts Possible EMI Outcomes

EMI is still working to keep itself out of Citigroup’s hands. But according to Showbizz411 this company is having a hard time because some of their contacts with artists like The Beetles, Pink Floyd, Coldplay and Norah Jones include clauses that prevent them licensing out many of their recordings.

If they had been able to proceed Universal Music Canada would have been licensed to distribute EMI’s catalog in Canada. But it appears that option fell through, resulting in additional predictions by Billboard, which can be read here.