UK music firm EMI today announced it will sell its recorded music unit for £1.2bn ($1.9bn) to Universal Music. Universal Music is a unit of Vivendi, the French media company. EMI’s labels include Blue Note, Capitol, Parlophone and Virgin Records.
“Universal Music Group is committed to both preserving EMI’s cultural heritage and artistic diversity and also investing in its artists and people to grow the company’s assets for the future.” says Vivendi’s Chief Executive.
Hedge Fund Terra Firma run by Guy Hands (below) bought EMI at the peak of the market for a whopping $4bn, and looks like having turned in a $2bn loss for its investors.
It failed in its suit against its financial advisors Citicorp for bad advice. Looks bad advice from where I stand. Hands was quoted the other day as saying “the days of speculation and quick returns must end”. Sounds like hindsight to me.