Wednesday, April 7, 2010

Is EMI going down?

EMI - OK Go + Lawsuit /w Gorilaz + Lawsuit with lots of other people = the least of EMI's problems.

Ok, that probably didn't actually make sense, but my point was EMI is not looking so good. News of EMI's financial woes have long been public, but some information (not sure how accurate) as to why they are so so screwed is starting to surface. Here's a few quotes from about EMI problems.

Exactly what's going on at EMI varies by one's sources, but clearly the company is in a messy struggle for its survival. As of last Wednesday, EMI has just 90 days to raise $183 million to make an overdue loan payment and present a viable plan fir its future to creditor Citi.

Now that talks to license EMI's catalog with Universal have broken off, Sony issaid to be back at the table. Formal negotiations between Sony's finance director Kevin Kelleher and EMI's executive chairman Charles Allen could begin in May, if advisers can agree on an outline agreement over the next few weeks


The contracts of some of EMI's best selling acts could be the reason that the label group has yet to make a catalog licensing deal that would provide much needed cash. The Beatles, Pink Floyd, Coldplay and Norah Jones were named by Showbix411 as having contracts which prevent EMI from licensing their recording to another label.

If true, EMI's extensive catalog would be significantly devalued. "Sources say that when the UMG folks realized this, they pulled out at the last minute," according to the blog. "EMI then went to Sony, almost made a deal there until that gang asked the essential questions." Other media sources suggest that Sony may still be willing to continue negotiations.

- Ian Gollahon

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