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One of the original bastions of British and subsequently world music EMI finally concedes defeat - citing poor record sales due to internet downloading and such.

Warner's got gazzumped it seems for 265p per share...

Private Equity Locusts...

good / bad? what do you think?

Music industry in tatters as usual...

Welll if you do go around selling your cd's for £15 a pop what do you expect.

I know it's a very simplistic view but i'm simple so what do you expect. Don't think it signifies the end of the music industry as such, just a massive change.

thats mad.

the corporate world is slowly caving in on itself. crazy.

http://news.bbc.co.uk/2/hi/business/6677875.stm
http://www.terrafirma.com/

this is about a market sustained mostly by music built purely to make money, like boy bands or crazy frog. personally i dont think it matters which fat cat gets the bigger cheque, theyre businessmen with token concerns over the quality of their musical output, next year will be the same whoevers shotting the shares.

any underground scene can thrive independantly without a profit driven major

luke.envoy wrote:
any underground scene can thrive independantly without a profit driven major

and this^ is a blessing. i remember when FFRR/Priority was trying to buy out metalheadz from goldie. luckily he was smart enough to say no, because look at what metalheadz has become.

Guy Hands is a very shrewd individual - ex Nomura. man will turn around EMI, take it public again, and make much money...

private equity is a good thing (it makes sleeping firms competitive again) and there is so much liquidity flying around currently that people are just looking for opportunities.

Still I'm sure the powers that be at EMI are not pleased...

Spaceboy wrote:Guy Hands is a very shrewd individual - ex Nomura. man will turn around EMI, take it public again, and make much money...

private equity is a good thing (it makes sleeping firms competitive again) and there is so much liquidity flying around currently that people are just looking for opportunities.

Still I'm sure the powers that be at EMI are not pleased...

seen. more importantly, is the fact that all the labels at emi are going to go through restructuring, which means layoffs. everyone working at emi just shit themselves.

luke.envoy wrote:this is about a market sustained mostly by music built purely to make money, like boy bands or crazy frog. personally i don't think it matters which fat cat gets the bigger cheque, they're businessmen with token concerns over the quality of their musical output, next year will be the same whoevers shotting the shares.

any underground scene can thrive independently without a profit driven major

^^ EMI head

seckle wrote:

Spaceboy wrote:Guy Hands is a very shrewd individual - ex Nomura. man will turn around EMI, take it public again, and make much money...

private equity is a good thing (it makes sleeping firms competitive again) and there is so much liquidity flying around currently that people are just looking for opportunities.

Still I'm sure the powers that be at EMI are not pleased...

seen. more importantly, is the fact that all the labels at emi are going to go through restructuring, which means layoffs. everyone working at emi just shit themselves.

I really dont know. I dont know how much debt they have on their books. All about debt baby...
The man wouldnt buy the firm if he didnt think there is juice in it. Just look at their back catalogue - thats where the cash is at.

i dont know enough about it to have a strong opinion, but from what i understand of private equity i have an automatic distrust...

obviously it cant be so simple, but broadly speaking does it not mean further pressure to cut internal costs (in this context no doubt to be weighed on artists and workers), less transparency (more opportunity for corruption and profiteering by those at the top), and even further concentration of money in the hands of even fewer?

but is the idea that the other option is for the company to fall apart, and in that case the jobs would all be lost anyhow? and through maintaining that dynamism it leads to a more stable economy?

as i say i dont know much about it but am interested to hear more

watch for the counter-bid by Warner. they will try it

elgato wrote:i dont know enough about it to have a strong opinion, but from what i understand of private equity i have an automatic distrust...

obviously it cant be so simple, but broadly speaking does it not mean further pressure to cut internal costs (in this context no doubt to be weighed on artists and workers), less transparency (more opportunity for corruption and profiteering by those at the top), and even further concentration of money in the hands of even fewer?

but is the idea that the other option is for the company to fall apart, and in that case the jobs would all be lost anyhow? and through maintaining that dynamism it leads to a more stable economy?

as i say i dont know much about it but am interested to hear more

its financial restructuring / re-engineering. cleaning the books up. cutting off businesses that are not profitable etc - the works.
not about mistrust - there will be probably be more transparency actually. its a good thing, it keeps capitalism ticking over when it loses its way...
and yes its a zero-sum game there will be winners and also losers...people will lose jobs / artists will get the axe...such is life.
but yeah warners are lurking innit tron!

Spaceboy wrote:not about mistrust - there will be probably be more transparency actually

transparency to private investors or the public / govt?

is it really a positive direction for the economy to move in? it may increase dynamism and re-stimulate the businesses invested in, but will it lead to a greater standard of life for the many in the long term? to me it seems questionable when the fundamental concept seems to be to concentrate more power and more money in a smaller group of people...

as i say, im obviously working on a lot of speculation, im interested to hear convincing arguments to the contrary

Why are you concerned how transparent EMI are to the public?

Dont forget the people backing Guy Hands / Terra Firma want total transparency otherwise they would not invest...they need to know what the deal is totally...and then of course you have the SEC and FSA who require a certain standard of transparency...

Of course its good for society because when the firm is restructed and grows again...jobs will be available...ultimately the company will go public again...thats the aim of private equity...take your money out in tranches...over a few years...

cyclicality of business...

unfortunately music is gettin fucked in the ass because of the internet...

Spaceboy wrote:Why are you concerned how transparent EMI are to the public?

i suppose it just seems that if information only needs to go so far, then its more likely that people will adopt questionable practices

Spaceboy wrote:and then of course you have the SEC and FSA who require a certain standard of transparency...

that certain degree is key i guess

Spaceboy wrote:ultimately the company will go public again...thats the aim of private equity...take your money out in tranches...over a few years...

seen i didnt know that... so its very much a temporary arrangement?

maybe we're heading towards a music industry where artists/producers/engineers do things for themselves and reap the benifits themselves instead of greedy buisnessmen cashing in on talent, or trading talent for a gimmick/ass and titties.

maybe not... but it would flush out lots of shit music if it happened....


maybe i dont make any sense... ah well im bored at work and this just got me a couple of minutes closer to knocking off

haha i love the oneman / envoy insider knowledge

d.three wrote:

luke.envoy wrote:this is about a market sustained mostly by music built purely to make money, like boy bands or crazy frog. personally i don't think it matters which fat cat gets the bigger cheque, they're businessmen with token concerns over the quality of their musical output, next year will be the same whoevers shotting the shares.

any underground scene can thrive independently without a profit driven major

^^ EMI head

Innit ha ha

Kiddin Luke..your chest