EMI Sold, Finally. What's Next?

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The saga of EMI’s efforts to find a buyer was even lengthier than the Murdoch/Bancroft tale, and now this one has concluded as well: Terra Firma Capital Partners has finally passed the 90% EMI shareholder support threshold it needed to go forward with its $5 billion buyout.

The sequel is likely to be quite messy, though. It’s hard to fathom Terra Firma’s strategy, since the traditional p.e. gambit of cost-cutting, followed by a return to the market, is unlikely here: EMI has gone through many rounds of cutbacks in the post-Napster era, and there is very, very limited appetite for a publicly traded music company these days (check Warner Music’s stock lately?). More likely that the compan

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y gets sliced and diced: The most valuable asset isn’t the business unit that records and sells music, but EMI’s publishing unit, which owns the underlying rights to a valuable catalogue of songs. Either way, plenty of turmoil ahead.

New boss for Norah.

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