Finance

  1. Universal Music Posts 10% Revenue Gain, Matches 2008 Revenue in Q4

    March 02, 2011 11:54 AM EST A strong end to 2010 gave Universal Music Group a 9.9% increase in revenue in the fourth quarter, according to financial details released by parent company Vivendi . It was the third straight year-over-year increase in quarterly revenue. Full-year ...

  2. WMG Businesses Receive More Than 10 Bids in Auction

    February 28, 2011 7:00 PM EST The Warner Music Group has received more than 10 bids in the first round of the auction being conducted on its behalf by Goldman Bros., according to Bloomberg News , who quoted anonymous sources. Sony ATV and BMG, the Berteslmann/KKR joint venture ...

  3. Borders' Chapter 11: What Impact Will It Have On The Music Business?

    February 16, 2011 6:34 PM EST The Borders Group's Chapter 11 filing shouldn't have too much of an impact on the music industry in general: Over the last two years the Ann Arbor-based merchant has made deep cuts in its music commitment. But it will have a big impact o ...

  4. Is Terra Firma's Investment in EMI The Biggest-Ever Private Equity Loss?

    February 07, 2011 2:36 PM EST Terra Firma's £1.7 billion (US $2.7 billion) loss on its investment in EMI could be a private equity record, according to research by Private Equity News and Dealogic reported in Financial News . The article reads: "Forstmann Little wrot ...

  5. Now That Citigroup Has Taken Over EMI, What's Next?

    February 01, 2011 4:26 PM EST Citigroup's earlier-than-expected takeover of EMI Group and its recapitalization of the company's balance sheet effectively presses the fast-forward button on a resolution of the major label group's fate. The bank had been widely ex ...

  6. Citigroup Takes Over EMI

    February 01, 2011 11:36 AM EST Citigroup has acquired EMI Group and has recapitalized the major label group in a debt-for-equity swap, the two sides announced Tuesday. As a result, the company's debt has been reduced by 65% from £3.4 billion to £1.2 billion, and the compan ...

  7. Entertainment And Media Deals Lead 2010 Mergers and Acquisitions

    January 28, 2011 6:54 AM EST U.S. entertainment and media industry merger and acquisition activity rose slightly in 2010 when looking at the number of deals and outpaced the overall U.S. deal market, according to PricewaterhouseCoopers. However, the total value of completed i ...

  8. Warner Music and EMI For Sale? It Could Happen, Insiders Say

    January 21, 2011 12:00 AM EST All hell has broken loose in the music business: The Warner Music Group will be shopped while it prepares to buy EMI, should that company come up for sale, according to reports. Sources told The New York Times that the private equity firms that ow ...

  9. Warner Music and EMI For Sale? It Could Happen, Insiders Say

    January 21, 2011 12:00 AM EST All hell has broken loose in the music business: The Warner Music Group will be shopped while it prepares to buy EMI, should that company come up for sale, according to reports. Sources told The New York Times that the private equity firms that ow ...

  10. Report: Warner Hires Goldman Sachs to Find Buyer (and Seller)

    January 20, 2011 12:00 AM EST Warner Music Group has hired investment bank Goldman Sachs to find a potential buyer for all or part of the company, according to a report by the New York Times' DealBook blog . Warner is said to have been approached in recent months by priva ...

  11. The Twitter-Factor: 50 Cent's Stock Drops 36% After Rapper Stops Tweets

    January 13, 2011 12:00 AM EST Shares of H&H Imports, in which 50 Cent has a stake, gained on Monday after the rapper promoted the company via Twitter. But the stock fell Tuesday and Wednesday after 48 hours without tweets from the music star, the New York Post reported. Ov ...

  12. Business Matters: Terra Firma Close to Losing EMI, Reports Say

    December 13, 2010 12:00 AM EST Opinion and analysis of the day's music news. TERRA FIRMA COULD LOSE EMI BY CHRISTMAS -- Reports out of the U.K. claim Terra Firma could lose EMI by Christmas. The paper said Terra Firma chief Guy Hands has told investors to expect the worst ...

  13. Guys Hands Focuses On 'Next Deal'

    November 19, 2010 12:00 AM EST In his first public comments since losing a lawsuit against Citigroup over the EMI deal, Guy Hands said his buyout firm Terra Firma would have "looked like geniuses" if it had not bought EMI Group in 2007. He was speaking at the Nov. 18 ...

  14. Business Matters: Veritix, Ghostly

    November 11, 2010 12:00 AM EST Opinion and analysis of the day's music news. Veritix's $100 Million -- Ticketing continues to heat up. Veritix has taken out a five-year, $100 million line of credit to better compete with the resources of Ticketmaster. Put simply, some ...

  15. CAA sells 35% stake to TPG Capital

    October 01, 2010 12:00 AM EDT CAA has sold a 35% equity stake to private investment firm TPG Capital in a transaction expected to help the powerhouse talent agency further build its sports business and monetize the stakes of the partners who own and run the business. TPG has i ...

  16. French Indies Body Laments Govt Music Strategy

    September 17, 2010 12:00 AM EDT French independent labels trade body UPFI has publicly denounced the government's policy measures to support the music sector. In a statement, UPFI stressed that "the measures planned for music unfortunately won't have any significa ...

  17. EMI Dispute Ruling Due Sept. 15

    September 13, 2010 12:00 AM EDT Citigroup Inc and Terra Firma Capital Partners Ltd will know by Sept. 15 whether their dispute over the buyout house's 2007 acquisition of music group EMI will proceed to trial, a U.S. judge said. Lawyers for Citigroup argued in Manhattan fed ...

  18. Private Groups Acquire Alliance Ent.

    September 01, 2010 12:00 AM EDT Alliance Entertainment, the second largest music wholesaler in the United States, has been acquired by two private equity firms, Platinum Equity and the Gores Group. Financial terms of the transaction were not disclosed. Alliance Entertainment is ...

  19. Pensions Regulator To Decide On EMI

    August 27, 2010 12:00 AM EDT The U.K. Pensions Regulator has been asked to rule on the funding of the EMI pension scheme because the trustees and the company cannot reach agreement, the BBC reports. It will be the first time the Pensions Regulator has decided how much extra c ...

  20. Mid-Year Investments Wrap: Download, Streaming Services Lead the Way

    July 14, 2010 12:00 AM EDT There wasn't exactly a windfall of investments flowing to music-related startups in the first half of 2010, but they are still attracting investors' interest. There were 30 investment deals in the first half of 2010, according to Billboa ...

  21. Business Matters: Roger Faxon, EMI, VC Funding, Price Wars and more

    June 22, 2010 12:00 AM EDT EMI'S DEDICATION TO A&R -- After Roger Faxon was named head of EMI Music , some people in the business press were under the impression that EMI would become either more committed to publishing or less committed to new artist development. ...

  22. Sales Tax Hike In U.K. Emergency Budget

    June 22, 2010 12:00 AM EDT The U.K. music industry is to be hit with an increase in V.A.T. (value added tax) from 17.5% to 20%, as the new Conservative and Liberal Democrat coalition government begins to tackle the country's budget deficit. The general increase in the ...

  23. Analysis: Five Reasons To Doubt PWC's New Report

    June 16, 2010 12:00 AM EDT For years the record industry has hoped revenues will bottom out and growth will return to beleaguered record labels. According to a new PricewaterhouseCoopers report, the low mark will come in 2013. However, the report has enough flaws to temper ...

  24. Business Matters: Borders, Lala, Canada's CD Tariff, Buzzmedia, Irving Plaza and More

    June 01, 2010 12:00 AM EDT -- Borders reported a greater operating loss and an improved net loss in the first fiscal quarter ending May 1, 2010. The net loss of $64.1 million was a fair improvement over the $86 million net loss in the previous year’s first fiscal quarter. R ...

  25. EMI Notes: Pension Controversy Back, Questions About Citi's Intentions

    May 17, 2010 12:00 AM EDT -- EMI 's pension fund has been a cloud hanging over Terra Firma since the private equity firm acquired the music company. Now, Britain's pension regular is calling on Terra Firma to fill a £250 million gap in funding . Extra payments in ...

  26. Report: Terra Firma Secures EMI Funds

    May 11, 2010 12:00 AM EDT EMI Group owner Terra Firma Capital Partners has reportedly secured investors' approval to raise £105 million ($156 million), to avoid a breach of the major's loan covenant with Citigroup. Terra Firma needed the support of 75% of its inv ...

  27. Business Matters: New York Times, MXP4, News Corp., Martina McBride and More

    April 22, 2010 12:00 AM EDT -- The New York Times Co., owners of The New York Times and Boston Globe , posted a profit in Q1 2010. The company posted a profit of $12.8 million on revenue of $588 million. National advertising improved. Online revenues grew 15.5% to $90.4 mill ...

  28. More Digital Blues, Rhapsody Edition

    April 06, 2010 12:00 AM EDT Had Rhapsody been a standalone entity in 2009, it would have reported a net loss of about $26 million and an operating loss of $54 million, according to pro forma financial statements released by RealNetworks on Tuesday. Though Rhapsody has about ...

  29. Live Nation: DOJ Concessions Cost $118 Million In Annual Rev

    March 30, 2010 12:00 AM EDT Concessions to the Department of Justice cost Live Nation about $118 million in annual revenue, according to pro-forma financial statements released by Live Nation. The documents depict the new company as if both companies merged at the beginning ...

  30. Report: EMI In Licensing Talks To Raise $601 Million

    March 22, 2010 12:00 AM EDT EMI is in talks to allow rival labels to manage its back catalog in order to raise funds and prevent a takeover from its lender, reported the Sunday Times. EMI, owned by Guy Hands' private equity group Terra Firma, is trying to put in place a ...

  31. Business Matters: WMG, EMI, Rhapsody, Sonos and more

    March 15, 2010 12:00 AM EDT - Over the weekend, The Telegraph reported that private equity firm KKR is in talks with Warner Music Group to break up EMI . KKR, which last year created a music publishing joint venture with Bertelsmann, is said to desire EMI’s music publishing ...

  32. KKR, Warner Music Eye Break-up Bid For EMI: Report

    March 15, 2010 12:00 AM EDT Private equity firm KKR and Warner Music Group are in talks to launch a break-up bid for Warner's indebted British rival EMI, reported the Sunday Times. The paper said KKR is interested in acquiring the music publishing arm of EMI, which it s ...

  33. Report: EMI Brings In Director

    February 26, 2010 12:00 AM EST EMI has appointed Peter Williams to the board of one of its holding companies, as its buyout house Terra Firma tries to sort out the loss-making record label's finances, the Daily Telegraph reported on Friday (Feb. 26). Williams, a former bos ...

  34. EMI Posts Full-Year $2.48 Billion Net Loss

    February 04, 2010 12:00 AM EST EMI Group, at the centre of an acrimonious legal dispute between buyout house Terra Firma and Citigroup (C.N), posted a full-year 1.56 billion pound ($2.48 billion) net loss and said it needed more money to stay afloat. The deal by Guy Hands' ...

  35. @MIDEM: Impala Unveils Financial Action Plan For Biz

    January 26, 2010 12:00 AM EST Brussels-based pan-European independent labels body Impala has launched a radical 10-point financial action plan for the music industry. "This is a call for action to national governments, the EC and the music industry," Helen Smith, exe ...

  36. President Sarkozy Backs French Digital Strategy

    January 08, 2010 12:00 AM EST France's mission to improve the growth of legal digital services for cultural works has hit the headlines, thanks to its proposal to tax advertising revenues from online giants such as Google to support the creative industries hit by the digi ...

  37. Citigroup Says Not Seeking Buyers For EMI

    December 22, 2009 12:00 AM EST Citigroup said it was not seeking buyers for EMI, whose owners Terra Firma are suing the U.S. bank for billions of dollars in damages relating to its 2007 buyout. The statement came after the Observer newspaper reported on Sunday (Dec. 20) that Ci ...

  38. Update: Borders U.K. Files For Administration

    November 26, 2009 12:00 AM EST Borders U.K. called in the administrators - roughly equivalent to Chapter 11 bankruptcy protection - on Thursday (Nov. 26), joining a string of British high-street retailers that have fallen victim to the economic slump and tough competition. Admi ...

  39. Analysis: A Deeper Look at EMI’s Numbers

    November 23, 2009 12:00 AM EST During the ongoing Terra Firma-Citi saga, EMI has released a few numbers that show improvements in its divisions' operating performance. (See a chart of top-line performance here , via paidContent .) But, beyond the simple accounting measure ...

  40. Terra Firma Expects Citigroup To Share EMI 'Pain'

    November 19, 2009 12:00 AM EST Private equity firm Terra Firma expects Citigroup to share in the pain of restructuring music business EMI, according to Guy Hands, the buyout firm's founder and chairman. Citigroup, which holds EMI's debt of about £2.6 billion ($4.3 bil ...

  41. Thai Music Firm GMM Grammy Sees Lower Earnings

    November 18, 2009 12:00 AM EST GMM Grammy, Thailand's top music and entertainment group, said it expected this year's net profit to drop by 20% from last year's 705 million baht ($21.3 million) due to higher operating costs. "We see net profit this year fall ...

  42. Citi Rejects Terra Firma's Latest Bid To Save EMI: Report

    November 16, 2009 12:00 AM EST Citigroup Inc recently rejected a proposal from Guy Hands' private equity firm Terra Firma Capital Partners to restructure the debt of music group EMI, the Wall Street Journal said on Monday. The buyout firm had offered to inject about £1 bil ...

  43. Twitter Gets New Round Of Funding, New Backers

    September 28, 2009 12:00 AM EDT Twitter has received $100 million in funding, valuing the company at $1 billion, according to a person familiar with the matter, as investors bet that the Web company's explosive growth will yield actual revenue or a lucrative deal. Investors ...

  44. Gaming Industry Opens Music Discussion Forum

    September 16, 2009 12:00 AM EDT TIGA, the representative trade body for the U.K. video games industry, has launched a new service on its Web site called 'Creative Industry Switch,' which invites music companies, artists and games developers to come together in discussi ...

  45. EU clears Bertelsmann, KKR music rights JV

    September 09, 2009 12:00 AM EDT German media group Bertelsmann gained European Union regulatory approval on Wednesday for a joint music rights venture with private equity firm Kohlberg Kravis Roberts & Co. Bertelsmann, which will own 49% of the joint venture, will contribute ...

  46. Analysis: Music Biz Earnings Recap

    August 25, 2009 12:00 AM EDT The latest round of earnings releases by music and music-related entertainment companies was a collection of troubled performances and requests for cautious optimism. As has been the case for many quarters, these companies emphasized the positives ...

  47. EMI Music Earnings Triple To $246 Million

    May 07, 2009 12:00 AM EDT EMI Music has increased EBITDA to £163 million ($246 million) for the year ending March 2009, an increase of 219.6% on the 2007-2008 EBITDA of £51 million ($77 million). The earnings increase at the recorded music division occurred during the firs ...

  48. The Orchard Within Stones Throw Of Profitability In Q4

    March 26, 2009 12:00 AM EDT After getting within sight of profitability, a misstep resulted in a Q4 loss of $306,000 for digital services company The Orchard, the company reported in its Q4 and fiscal 2008 earnings report on Wednesday. Pro-forma revenues for Q4, which accoun ...

  49. Music & Money: VC Firms May Pull Back On Music Investments

    March 05, 2009 12:00 AM EST With digital service providers having a hard time making money and new start-ups still having difficulty affording licensing, venture capital firms may be on the verge of pulling back from investing in the music space. That was one of the conclusi ...

  50. Muzak Files For Bankruptcy

    February 10, 2009 12:00 AM EST Muzak Holdings LLC, the maker of elevator music, filed for Chapter 11 bankruptcy protection Tuesday. The company had heavy debt load, and it filed to try to refinance some of its debt. Its total debt is between $100 million and $500 million and it ...

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