Report: UMG Walks Away From EMI Talks
March 31, 2010 at 6:18 AM (PT)
In the soap opera that is the current negotiations over EMI, UNIVERSAL MUSIC GROUP has again walked away from talks to strike a distribution agreement, reports THE WALL STREET JOURNAL. The report says the talks between UMG and EMI "restarted over the weekend (NET NEWS 3/30), fell apart again TUESDAY morning and won't be restarted by a deadline TODAY, people familiar with the matter said. Another possible bidder, SONY MUSIC, is also no longer in talks for a licensing deal with EMI, the people said."
EMI has spent the past few weeks trying to arrange a deal in which it would license distribution rights to one of its rivals. A deal would give EMI and its owner, TERRA FIRMA CAPITAL PARTNERS LTD., a cash infusion before TODAY's deadline in which it faces a default on borrowings from CITIGROUP.
TERRA FIRMA acquired EMI in 2007 with loans from CITIGROUP worth more than £3 billion ($4.5 billion).