EMI recommended investors accept a Pounds 2.4 billion ($4.73 bill...
EMI recommended investors accept a Pounds 2.4 billion ($4.73 billion) takeover by private equity group Terra Firma, Reuters and others reported Mon. Terra Firma is said to be planning to keep the music company intact. U.K.-based EMI and Warner…
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have been talking merger on & off for 7 years but couldn’t close a deal, Reuters said. In preliminary results for the quarter ended March 31, EMI Group revenue fell 16% to Pounds 1.75 billion, pretax profits more than 60% to Pounds 62.7 million. But EMI Group digital revenue rose 46.5% to Pounds 164.2 million, or 9.4% of revenue. CEO Eric Nicoli blamed the losses on “worsening market conditions which affected the entire recorded music industry, with revenue declines in every major music market across the world.” The restructuring will “realign our investment focus and direct our resources to areas where we will make higher and more sustainable returns,” he said. Digital sales are the bright spot for EMI, making it “confident about our long-term future,” Nicoli said: “Although fewer CDs are being purchased, people are consuming more music in more ways than ever before,” and EMI is “well-equipped for the digital age.”