Foot on the gas for music merger
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.