Saturday, December 17, 2011

Rumours suggest Universal might save HMV

In a piece that suggests HMV is following a dreadful year with a miserable Christmas comes speculation that Universal might try to make it all better for the nearly-defunct record shop:

Other industry sources speculated that Universal may intervene with a rescue offer for the business. Such a white knight deal would see HMV reunited with its former sister company EMI, the recorded music arm of which Universal agreed to acquire last month. HMV was spun out of EMI in 1998.
Universal are, apparently, currently keeping HMV afloat with generous credit terms, so it's not impossible.

But does Universal really need a company which is about to report six months losses of nearly £40m, and a business which has suggested it sees its future selling iPads and headphones rather than CDs and DVDs?

There's a historical joke here - when HMV was part of ThornEMI, it was part of a technology company which sold records on the side; if it was reunited with EMI in the Universal family it would be part of a record business, flogging technology on the side.