EMI (recorded music division) for sale?

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piston
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EMI (recorded music division) for sale?

Post by piston » Wed Feb 21, 2007 9:14 am

EMI mulls music division spin-off


James Robinson and Richard Wachman
Sunday February 18, 2007
The Observer

EMI may sell or demerge its recorded music division as part of a radical overhaul of the business designed to reverse falling profits. Sources close to the company, which has issued two profit warnings in a month, say the plan is being given serious consideration by the board as it attempts to cut costs and boost its share price.

A sale would leave EMI with its more profitable music publishing arm, which owns the copyright to more than 1 million songs recorded by artists including Sting, Aerosmith and Jay-Z.

The recorded music arm has been hit by disappointing CD sales in the US, and the growth of downloading. Although most major record companies have embraced digital sales, revenues are not expected to compensate for a fall in CD sales for many years.

Chief executive Eric Nicoli, who is now fighting for his job, blamed its poor performance for the warnings, the second of which prompted a 12 per cent fall in its share price last week.

The recorded music business can be lucrative but it is notoriously unpredictable. EMI had pinned its hopes on new releases from Robbie Williams and Janet Jackson, but they did not sell as well as it expected. The fact that the division's sale is under serious consideration shows the extent of the group's problems.

It forms part of a four-point plan to reverse falling profits at the group, which was announced last month following a first profit warning. Nicoli fired Alain Levy as head of recorded music following the warning and stepped into the role himself, although some EMI shareholders questioned the wisdom of the move.

Sources claim the plan, designed to save £110m a year, is more far-reaching than the City realises.It also includes dramatically reducing the size of its US business, pulling out of foreign markets and pursuing a more aggressive digital strategy. The business will be refocused to reflect new industry realities, according to sources.

Permira made a 320p-per-share offer for EMI last summer. The offer was rejected after Nicoli claimed the business was poised for growth, but EMI's shares closed at 221p on Friday.

Shareholders are expected to tell EMI's new chairman, John Gildersleeve, to find a new chief executive when they meet him in the coming weeks.
In the eyes of those lovers of perfection, a work is never finished—a word that for them has no sense—but abandoned....(Paul Valéry)

Ted

Post by Ted » Wed Feb 21, 2007 9:50 am

EMI has a long and distinguished history and holds a special place in my heart.
In order of importance for me, there’s Parlophone, an EMI division and the original UK label for the Beatles.
George Martin started producing Classical records for EMI and then moved into comedy records with the “Goons: featuring Peter Sellers and then found Brian Epstein hawking the Beatles to him after being turned down by Decca Records.

The US distributor for the Beatles was another EMI owned concern namely Capital Records which besides the Beatles had a few lesser known artists like Sinatra and the Beach Boys

Obviously EMI is famous for producing Classical Recordings but with vinyl now considered to be ancient media and CDs soon to follow, if you don’t have a computer to download to, you better start learning how to play an instrument if you want to hear music

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Post by Donald Isler » Wed Feb 21, 2007 11:20 am

Perhaps KASP Records wil stage a hostile takeover.
Donald Isler

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Post by RebLem » Wed Feb 21, 2007 11:25 am

Ted wrote: The US distributor for the Beatles was another EMI owned concern namely Capital Records which besides the Beatles had a few lesser known artists like Sinatra and the Beach Boys
Uhmmm, Ted, that's Capitol Records, not Capital Records.

I am still unclear as to exactly what is up for sale. Is it just their existing stock of classical releases with the masters, or is it also the contracts with their current roster of classical artists, or does it include other artists as well?
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Post by piston » Wed Feb 21, 2007 11:29 am

I don't see why K.R. should be intimidated by Warner, the current party interested in EMI. :D
In the eyes of those lovers of perfection, a work is never finished—a word that for them has no sense—but abandoned....(Paul Valéry)

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Post by Lance » Wed Feb 21, 2007 12:27 pm

Why don't we all pool our monetary resources, become the owners of the entire EMI recording catalogue (classical only). I would LOVE to be a CEO of such a company. I might even be compelled to do it for no fee, but that's negotiable! If EMI—"The Greatest Recording Organisation in the World"—were suddenly to fade into oblivion, just think of what a loss this would be to the music world. God only knows what the fate of the merger of RCA/Sony Classical [Columbia/CBS] is going to be in the future. Who would have ever thought two great competitors would merge as they did? It's nice that it happened as it allowed both companies to continue to operate. And think UNIVERSAL with DGG, Decca/London and Philips now under one blanket.

I probably have more EMI product on my shelves than any other single label, both LP and CD. RCA Victor would be next, and Sony/Columbia after that. They are all great catalogues. As I've said so many times, I'm glad I've got what I've got. It's been a treasure trove my whole life time.
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piston
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Post by piston » Wed Feb 21, 2007 12:47 pm

RebLem wrote:I am still unclear as to exactly what is up for sale. Is it just their existing stock of classical releases with the masters, or is it also the contracts with their current roster of classical artists, or does it include other artists as well?
The answer to this last question lies in the corporate distinction between EMI Recording and EMI Publishing. Commenting on this distinction, a France news medium merely identified EMI Publishing as a source of copyright revenues:
The Observer annonçait dimanche qu'il envisageait de vendre EMI Music pour ne conserver que sa branche EMI Publishing (droits d'auteurs), qui est rentable.
In the eyes of those lovers of perfection, a work is never finished—a word that for them has no sense—but abandoned....(Paul Valéry)

Ted

Post by Ted » Wed Feb 21, 2007 1:21 pm

RebLem Wrote:
Uhmmm, Ted, that's Capitol Records, not Capital Records.
Well, I’ve fashioned the noose and all my affairs are in order so I guess now the only thing left for me to do is say my goodbyes….I’d ask you if you wanted my Capitol Beatle Records, but they’re all Parliphone

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Post by RebLem » Wed Feb 21, 2007 8:32 pm

Ted wrote:RebLem Wrote:
Uhmmm, Ted, that's Capitol Records, not Capital Records.
Well, I’ve fashioned the noose and all my affairs are in order so I guess now the only thing left for me to do is say my goodbyes….I’d ask you if you wanted my Capitol Beatle Records, but they’re all Parliphone
:shock: :shock: :shock: :D :D :D :D :D :shock: :shock: :shock:
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Post by ch1525 » Wed Feb 21, 2007 8:53 pm

Well, I hear that William Barrington-Coupe of the Concert Artist label is looking to expand! :D

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Post by Lance » Wed Feb 21, 2007 10:38 pm

Ted wrote:RebLem Wrote:
Uhmmm, Ted, that's Capitol Records, not Capital Records.
Well, I’ve fashioned the noose and all my affairs are in order so I guess now the only thing left for me to do is say my goodbyes….I’d ask you if you wanted my Capitol Beatle Records, but they’re all Parliphone
Well, Ted ... they MUST be very rare. I thought those Beatles discs would be on the Parlophone label. Ha - just kidding, of course.
Lance G. Hill
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Post by diegobueno » Thu Feb 22, 2007 11:27 am

What is this, the Ash Wednesday Spell (from Wagner's little-known prequel to Parsifal, Lohenbrau)?

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Post by Ralph » Thu Feb 22, 2007 3:15 pm

Lance wrote:Why don't we all pool our monetary resources, become the owners of the entire EMI recording catalogue (classical only). I would LOVE to be a CEO of such a company. I might even be compelled to do it for no fee, but that's negotiable! If EMI—"The Greatest Recording Organisation in the World"—were suddenly to fade into oblivion, just think of what a loss this would be to the music world. God only knows what the fate of the merger of RCA/Sony Classical [Columbia/CBS] is going to be in the future. Who would have ever thought two great competitors would merge as they did? It's nice that it happened as it allowed both companies to continue to operate. And think UNIVERSAL with DGG, Decca/London and Philips now under one blanket.

I probably have more EMI product on my shelves than any other single label, both LP and CD. RCA Victor would be next, and Sony/Columbia after that. They are all great catalogues. As I've said so many times, I'm glad I've got what I've got. It's been a treasure trove my whole life time.
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