So, you like the music business? Think you can make some money at it? Well, no you can’t.
Euro financier Guy Hands is paying serious tuition to the school of rock and has been forced to write down by half his Terra Firma fund’s $3.3 billion investment in EMI, according to press reports out of the U.K.
The move was always a risky one as Hands and his private equity posse tried to cut costs at EMI, one of the big four music companies, or get a deal done with Warner Music or another major player. Artists such as KT Tunstall, Coldplay, Katy Perry, and Keith Urban sing under the EMI banner.
There was some revenue strength in the middle of 2008, but not enough it appears to make Hands’ situation much better.
Not so much. It has not only been a spectacular failure for Hands but even, from what we were hearing a few months back, caused friction within Citi, which financed a big part of the deal.
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