Foot on the gas for mu­sic merger

The Irish Times - Friday - The Ticket - - News -

It’s squeaky bum time for EMI la­bel em­ploy­ees and acts at the mo­ment. The de­ci­sion by the EMI board to rec­om­mend the £3.2 bil­lion (¤4.7 bil­lion) takeover of­fer from private eq­uity firm Terra Firma means Coldplay (right), The Bea­tles and Go­ril­laz are set to be in the same in­vest­ment shop­ping bas­ket as Ger­man petrol sta­tions Tank & Rast, the Odeon cin­ema group and North­ern Ire­land’s Phoenix Nat­u­ral Gas.

While there’s un­likely to be any short-term changes, Terra Firma will likely take a more prac­ti­cal and less sen­ti­men­tal view on the mu­sic com­pany’s tal­ent punts.

There’s much po­ten­tial for ad­di­tional value to be ex­tracted from EMI’s back-cat­a­logue, but it’s how the new own­ers will approach ac­quir­ing and de­vel­op­ing new tal­ent which will be the most telling. For ex­am­ple, will bands who still have not re­couped on their ad­vances and costs get to make a sec­ond album any more? In­ter­est­ing times ahead.

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