London – EMI has failed to secure a deal to license its
catalog to fellow major record labels Sony Music or Universal Music in a bid to
raise funds needed by parent company Terra Firma for a loan repayment, Reuters
reported, citing sources.
One source told Reuters the deal was "too
complicated for the two sides to agree," while another said the terms
offered were "not acceptable."
Terra Firma has said that it needs
about $150 million to make a loan payment and stave off a takeover of EMI by
Citigroup, which helped finance its $3.6 billion acquisition of the label in
Reuters cited sources saying that Universal was in talks on paying around
$300 million over five years for a license that would have given it the rights
to market and distribute EMI’s catalog in the U.S.
But, with these prospective deals
apparently kaput, Terra Firma now has until mid-June to find new funds from
investors to maintain control of EMI.
(DMW previous coverage)