The Cinderella story of the unexpectedly successful Citigroup auction of EMI – with the business being sold in two halves to Vivendi’s Universal and Sony – is the recorded music division.
The FT reports that Universal is paying about $1.9bn – more than the $1.7bn-$1.8bn that Citigroup, which took over the business from Guy Hands’ Terra Firma, initially hoped to get. That appears to signal some life in recorded music, after all.
The conventional wisdom of recent years has been that, while the music publishing companies that hold the back catalogue rights for well-known music, still had some value, recorded music values were slipping due to mass piracy and the digital revolution. Read more