Andre Yoskowitz
1 Apr 2010 23:49
EMI, one of the "Big 4" record labels, appears to be on the brink of being taken over by banking behemoth Citigroup after failing to sell off its North American artist distribution rights to other labels.
The label was looking to sell those artist rights to Sony and UMG for $300 million USD, but the negotiations broke down after the two sides could not agree on the price.
EMI, for its part, has a catalog with mega-stars such as Coldplay, Pink Floyd and some of The Beatles tracks.
Now, EMI must raise $180 million USD by June 15th, or face being taken over by creditor Citigroup, which will likely break up the label and sell all its assets to the highest bidders.
EMI was purchased in late 2007, right before "the Great Recession," for over $7 billion USD by Terra Firma Partners, which now owes Citi over $5 billion over the course of the following years.