Terra Firma, EMI: out of tune?
p2pnet news | Music:- Are things coming unglued at EMI / Terra Firma?
Guy Hands, the man who runs private equity firm Terra Firma Capital Partners, which bought Britain’s EMI, recently told staff in a confidential email, “the industry had been too slow to embrace the digital revolution”.
EMI was the first of the Big 4 organised music cartel to dump DRM and reports said Radiohead’s decision to trust its fans with pricing was reportedly behind Hands’ observation.
Now, “Terra Firma is already trying to trim its equity stake in EMI amid a major strategic review of the music company’s business that could result in big changes, including a possible sale of its physical distribution business,” says the New York Post, continuing:
“EMI insiders and financial sources confirmed that Terra Firma has met with dozens of private-equity firms, hedge funds and other institutions in a bid to recoup some of the $1.5 billion in equity it poured into EMI as part of its $4.7 billion acquisition.
“Terra Firma CEO Guy Hands already has gone back at least twice to the limited partners who participated in the original financing, asking for additional equity, according to one source who has met with the firm.
“Offering partners an opportunity to invest in a deal on their own isn’t unusual. But sources said that taking such a step just three months after closing the EMI deal and going outside of its co-investor base suggests that Hands is already disillusioned with his purchase.”
Terra Firma, “has yet to make its first debt payment as part of the EMI purchase,” and, “sources said the cost-saving measures under review are aimed at prettying up the balance sheet for when Terra Firma has to show the company’s numbers to its lender banks,” adds the New York Post.
Also See:
bought Britain’s EMI – Official: Terra Firma owns EMI, August 2, 2007
too slow – Wake up — or die, EMI told, October 8, 2007
New York Post – Terra Firma on shaky ground with EMI, October 29, 2007
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October 29th, 2007 at 6:38 pm
One has to be pretty stupid to invest any money in on of the four majors record companies. Who is going to invest in companies that sue their customers and call them thieves? Beside a boycott is in progress and it is getting speed.
Heeeelloooo!
October 29th, 2007 at 6:44 pm
Beside a boycott is in progress and it is getting speed.
—————-
Indeed a boycott is going on. I’ve been on one since the day sue’em started. I don’t care if it takes a lifetime of not buying. I’ll send the message to the one place they understand and listen, the bottom line. While they can make all the excuses they want, it’s the bottom line that always has their undivided attention.
November 1st, 2007 at 12:01 pm
Boycott? If you’re on the stealing side of the music debate, it doesn’t seem that your boycott is going to have much effect if you weren’t paying for music in the first place; what changed? You’re over-generalizing the “sue ‘em” issue. If someone is stealing from you, took your television and stereo or your paycheck, what do you do, say “bless you” and suggest that they take your new television or stereo or paycheck? Come on… get real.