EMI financial situation ‘dismal’
p2pnet view Music:- Below are three recent p2pnet headlines centering on EMI difficulties:
But EMI isn’t merely troubled, says a financial expert.
The proposal to recapitalize MP [Music Publishing] implies a value for this business of £1,462m (or 11.3 times Ebitda after deducting the per annum pension contribution) and the proposal to recapitalize RM [Recorded Music] implies a value for this business of £771m (or 5 times Ebitda after deducting the per annum pension contribution). Thus in total, the combined proposals lead to an implied total enterprise value for EMI of £2,233m (or 7.9 times combined Ebitda)
The italicised quote above came in a November 5, 2009, letter from Terra Firma boss Guy Hands (right) “to a Citi executive that proposed a restructuring of EMI and described Terra Firma’s valuation of each of the two divisions”, says Billboard.
In an overview of EMI debt, “almost £1 billion more” than Terra Firma “believes the music company is worth”, according to an article by The Deal’s Richard Morgan, quoted by Billboard, “The letter, revealed in court proceedings last month, paints a dismal picture of EMI’s financial situation”, it says.
“A total enterprise value of £2,233 million is £929 million less than £3,162 million of debt EMI is carrying, according to the figure The Deal quoted from Maltby Capital’s latest director’s report”, says the story, explaining “Enterprise value is a measure of a company’s market value that includes the market value of its debt, among other things”.
This should probably be filed under the heading What Else is New?
..… and identi.ca
First they ignore you, then they laugh at you, then they fight you, then you win ~ Mahatma Gandhi
Billboard – EMI £1 Billion Underwater?, March 23, 2010
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March 24th, 2010 at 2:10 pm
“EMI financial situation ‘dismal’ ”
Haha! 3 more to go for the musics and 6 more to go for the movies!
Cool!
March 24th, 2010 at 4:46 pm
above -> ….. and what will u steal then u nieve misguided idiot .
March 24th, 2010 at 5:31 pm
when their is 1 or 2 music corporations left then they will realise who are the true individuals who rule the world, and its not them deliquent mis-guided wants all-of-the-cake, gap-shites.
or..
the whole lot will just simply die, holding their copyrights.
pity tho they cud just give us what we want, better music, ppl THAT CAN sing, no one-hit wonders, cheaper music, and available digitaly over the internet for a more than recenable price (etc: 20p per track, instead of itunes type of take-the-piss prices).
March 24th, 2010 at 6:12 pm
@ Syntax
“above -> ….. and what will u steal then u nieve misguided idiot .”
You are delusional if you think we need the shit sold by the 7 corporations of parasites. Even for free!
Sorry troll. We will continue to boycott these pigs until they are gone. Tell this to your boss.