The EMI story continues to entertain and distress in equal measure. It would seem that the friction in EMI has now spilled over to Guy Hand’s own private equity company TerraFirma as can be read here.
This news that Mr Hands has bought out (for a nominal sum) some of his co-investors isn’t so shocking taking into account that many investors have no more money to invest. However, the timing is as EMI is due a health check with the banks around March time. Perhaps Mr Hands is expecting to have to literally cough up more money from his own pockets (EMI’s losses have been reduced, but they are still losing and not making money) and he doesn’t want any dead wood as part of the fund holding him back.
Guy Hands might know exactly what he is doing, and indeed he might have a great master plan. On the other hand he might just happen to be the Moby Dick of the Music Industry and EMI is one huge whale.
Clearly in the year where UK acts have been doing so well, its a shame that the UK’s main record label is still so weak and is lacking a true strategy to carry it forward. Once the Beatle’s recordings become shared ownership with the Beatles (which under US law they will) then it might be a case of game over.