SAY GOODBYE TO EMI
I know, I know. I’m usually the guy who’s very Bullish
on the condition of the music business, but this is
one story even I cannot spin upward.
To save the beleaguered major label, EMI, its owner,
Guy Hands has about a month to come up with about
$150 Million to satisfy payroll and debts.
In real estate terms, Hands is upside down on his
house. He now owes more than he can sell the company
for and his bank, Citigroup, is forcing him to foreclose
rather than give him the chance to save the label that
controls such classic catalogs as the Beatles.
Knowing he can not find a buyer or come up with the
money, Citigroup’s unofficial but rather obvious plan
is to foreclose, at which point they get their hands
on the super valuable catalogs for dimes on the dollar.
Normally, when companies this size are in trouble
their creditors help out by restructuring the loans.
But not here. In this case Citigroup, has bitch-
slapped Hands and all but said, let it burn.
When your own investors want you to fail, there is
little hope of survival.
Historic music in the hands of bankers.
How did this happen? Could we have predicted it?
Say Goodbye To EMI The Future of Music: Moses Supposes
NOTE: WHAT POSITION DOES THIS LEAVE THE JACKSON
ESTATE AND SONY/ATV CATALOG THAT OWNS A MAJORITY
OF THE PUBLISHING ON THE BEATLES CATALOG...
QUESTION: COULD IT BE THAT THERES ONE LAST HOPE??