Down, and possibly out, EMI might be entertaining an offer from Warner Music Group for a buyout of their recorded music division. Although Terra Firma boss Guy Hands says that he's not interested in a sale, he might be having his "hand" forced by other stakeholders.
"Warner Music is contemplating a $750m (£470m) bid for EMI's recorded music division. Wall Street sources say it could be lodged with EMI's owner, private equity group Terra Firma, within weeks," reads a report in The Gaurdian today.
The embattled EMI is facing the classic problem of a major label and corporate bohemeoth that bulked up in the 2000's as music sales declined. When the economic collapse happened in 2008, EMI was left in a difficult spot -- they owed lots of money to investors, saw declining revenue and had their "hands" tied in terms of options. EMI became too big to function.
Guy Hands is trying radical steps under pressure to make good on loans due to Citigroup, who helped the label with loans to avoid shutting down in 2007. If EMI doesn't make some quick cash-money (£150 million), Citigroup could takeover the label.