If you think that only the radio industry is dysfunctional, think again.
There are four majors remaining in what’s left of the record business and EMI could lose control to Citigroup very soon – the bank that propped the label up with billions of dollars during hard times.
And it all could happen before the New Year.
The private equity firm of Terra Firma under the management of Guy Hands is already whispering that they may have to turn the label over to the bankers.
That sounds like radio and no good can come from it.
You almost can’t blame a bank for wanting its money back when you’re talking about billions. I get that. What they don’t get is that bankers don’t know how to operate anything.
I refer you back to radio.
Terra Firma lost a court battle not long ago with Citigroup where it basically said that they were lured into buying EMI – that’s fraud except that the courts didn’t buy it.
$6.7 billion later, Terra Firma is in quicksand despite cost cutting almost certainly guaranteeing that one of the big four labels will be up for grabs when the bank takes over.
It would be as if Citadel filed for bankruptcy and then Cumulus wanted to steal it as it emerged.
Hey, wait a minute! Didn’t that already happen?
There are serious repercussions for the music industry if Citigroup takes back EMI and eventually sells off the small parts.