So, who exactly is Spotify negotiating with at EMI, anyway? According to sources speaking Tuesday with Digital Music News, any licensing deal is probably none-too-secure at this juncture, despite chatter about a deal being close." The reason is thatCitibanknow the 100 percent controlling owneris looking to divest itself of this toxic asset," a situation that invites all sorts of complications.
The biggest problem is that licensing arrangements may not transfer after any sale. Instead, they can be nullified depending on the terms of the specific licensing contracts and acquisition arrangements. The bank just took the house back, so are you going to do a deal with the squatter?" one source quipped, referring to remaining management. [Spotify is] effectively negotiating with squatters. Hey, they'll keep the lights on and mow the lawn, but they don't own the place." Or, the assets.
And the EMI assets," meaning both publishing and recording divisions, are almost certainly in play. Citi is not making a run at the music industry, that was [Guy] Hands' thing," another source relayed, while pointing to a 300 million pound ($484 million) operational fund to keep EMI running while the bank considers its options.
In fact, the source noted that Wall Street interests are definitely getting the memo" that music-related properties are bad betsat least for those looking for 2007-style, leveraged buyout (LBO) returns. That game is overperhaps obviouslythough the rest is speculative, including details on how EMI's considerable assets would be offloaded. Everything's in play, and sources seemed ready for a lively few months ahead, thanks to a very motivated seller.
Related: Spotify Blah, EMI Blah...
The biggest problem is that licensing arrangements may not transfer after any sale. Instead, they can be nullified depending on the terms of the specific licensing contracts and acquisition arrangements. The bank just took the house back, so are you going to do a deal with the squatter?" one source quipped, referring to remaining management. [Spotify is] effectively negotiating with squatters. Hey, they'll keep the lights on and mow the lawn, but they don't own the place." Or, the assets.
And the EMI assets," meaning both publishing and recording divisions, are almost certainly in play. Citi is not making a run at the music industry, that was [Guy] Hands' thing," another source relayed, while pointing to a 300 million pound ($484 million) operational fund to keep EMI running while the bank considers its options.
In fact, the source noted that Wall Street interests are definitely getting the memo" that music-related properties are bad betsat least for those looking for 2007-style, leveraged buyout (LBO) returns. That game is overperhaps obviouslythough the rest is speculative, including details on how EMI's considerable assets would be offloaded. Everything's in play, and sources seemed ready for a lively few months ahead, thanks to a very motivated seller.
Related: Spotify Blah, EMI Blah...