Wednesday, August 01, 2007

The battle is over...

As of today EMI finally has a new owner: private equity group 'Terra Firma' announced shortly before the 1pm August 1st deadline, set by the Monopolies and Mergers Commission, that it has secured acceptances from shareholders representing more than 90% of EMI shares, which allows it to now forcibly purchase the outstanding equity. The deal values EMI at approximately £2.4 billion.

This will hopefully put an end to the turbulent times at EMI; although one of the 'big four' it, like the rest to be honest, has been struggling with the fast changing nature of the music market. I have levelled criticisms at all the major players previously in this blog and do not plan to repeat them. What I will add here is that I believe (and indeed hope) that this outcome is far better than had EMI been swallowed up by Warner Music, which looked a distinct possibility a few months ago. Bigger and better together is now looking like a suspect policy in the current situation - and two wrongs certainly don't make a bigger right.
The boss of Terra Firma, Guy Hands, has a reputation for his hands-on approach and hard work. He is also something of a maverick - while still at school he was allowed to choose any rĂ´le to play in 'Macbeth'. Remarkably, he chose to be Lady Macbeth!

For a very brief history of EMI (and thus of HMV too) I suggest the following link:
http://news.bbc.co.uk/1/hi/business/616485.stm

1 comment:

hp said...

i agree with you about this situation being far better than warners taking control. hopefully we are both right, as my job hangs in the balance . . .

very nice blog you have here!
:)
heather