Sunday, November 09, 2008

EMI splits into three

There's a certain degree of logic in the plans for no-not-failing EMI splitting its business into three. It'll now have a division for its catalogue, a division for music services and a division for new music. It's not immediately clear where the splits are - music services, presumably, is going to use catalogue to provide these services; what point does a new Coldplay album become a catalogue album? The main reasoning would seem to be it'd make it simpler to spin off any bits - like making new records - which cost more than they bring in, should the need arise.

Still, Terra Firma is committed to trying to make the thing work:

[Recorded Music chief executive] Leoni-Sceti said: "EMI is absolutely not bankrupt, far from it. EMI has never been in such a financially sound situation. Terra Firma is a solid financial owner and is committed to this company … and committed to putting in more equity if it is required."

Well, in a market like the one we're now in, it's not like it's hard to raise money to throw about in a desperate fashion, is it?