Changes Coming Atop EMI?
August 16, 2007 at 5:46 AM (PT)
Now that GUY HANDS' TERRA FIRMA has picked up shareholder approval for EMI, questions are swirling regarding the future leadership of the British recorded music giant. THE NY POST reports that, according to multiple sources, the private-equity firm is looking for a possible new operations executive who can oversee EMI's day-to-day business, and it is willing to outside the music business to get one.
A meaningful role at EMI is also expected for STEPHEN ALEXANDER, a managing director at TERRA FIRMA, who in the past has overseen the private-equity firm's investments in movie theaters and food and beverage businesses.
What this means for current EMI CEO ERIC NICOLI's future at the label remains to be seen. Sources say that TERRA FIRMA is in the early stages of reviewing EMI. The private equity firm has publicly stressed that despite U.K. press speculation, there is no replacement for NICOLI in place, noting it will sit down with him in SEPTEMBER to discuss future plans. EMI declined to comment.
Where NORTH AMERICAN recorded music CEO ROGER AMES fits into the picture under TERRA FIRMA ownership is likewise a source of questions. AMES, the former Chairman/ CEO of WARNER MUSIC GROUP, has been rumored to be a possible in-house candidate to lead EMI should TERRA FIRMA decide to replace NICOLI.
AMES at one time was quietly working with hedge fund CERBERUS CAPITAL on a rival bid for EMI, sources said.