Tuesday, April 12, 2011

EMI: One lot

More misery for Warners, as the New York Post claims that Citigroup won't be selling off EMI in chunks. It'll be the whole lot or nothing.

Presumably because Citigroup knows nobody would be interested in some bits of the business, so it's going to offload the offal packaged with the prime cuts.

Why is this bad news for Warners? As the company tries to sell itself, the attractiveness of the offer is based mostly around dreams of combining a chunk of Warners with a chunk of EMI; publishing to publishing, recorded music to recorded music, ass to ass. If EMI is sold a single entity, that's going to be harder to pull off, and thus the value and interest in Warners falls.

[via The Loyalty Firm]