London
– Major record label EMI is in negotiations to effectively "pawn" its
back catalog to other labels for around $600 million for a five-year period, in
a bid to raise funds that parent company Terra Firma can use to make loan
payments to Citigroup, the Times Online reported. Terra Firma, the private
equity firm that acquired EMI for $4.7 billion in 2007, has been looking to
raise about $180 million to make a payment due to Citigroup in June, or else
face a takeover of the label by the bank.
The Times reported that talks began
weeks ago with Universal Music, but have since expanded to Sony Music and
Warner Music Group; sources said the labels would "prefer a longer license
period."
The Associated Press reported last month that EMI was also
considering a sale of its historic Abbey
Road studios to raise funds needed to repay
Citigroup.
Related Links:
http://snipurl.com/v06o0
(Times Online)
http://snipurl.com/v06sd
(WSJ)
http://snipurl.com/v06q5
(DMW previous coverage)
