-- The Guardian questioned Terra Firma's financing of its deal with EMI, which came years after Guy Hands demonized debt securitization. The last of Terra Firma's blockbuster deals was its acquisition of EMI. Citigroup provided £2.6 billion in financing and planned to securitize the debt - repackage into securities and sell to investors - based on EMI's future cash flows. Obviously, there were two problems: debt markets froze and Terra Firm's due diligence did not reveal the true state of EMI. The deal has left a dark cloud over participants. "The EMI acquisition has dealt a desperate blow to the reputations of all involved. Riaz Punja, who led the acquisition for Terra Firma, has left the private equity house. Michael Klein, Citigroup's head of investment banking and previously regarded as a potential chief executive, also departed. He had been seen as the driving force behind the deal." (The Guardian)

-- Speaking at the Digital Britain Summit on Friday, Universal Music Group exec Lucien Grainge dismissed the idea of legitimizing P2P because, he said, the risk of labels' investment in new artists needs to be rewarded (which implies P2P cannot be properly monetized). The majors' policy was underlined when Grainge later called on communications minister Lord Carter, who was in the audience, to implement a graduated response plan to fight illegal file-sharing. (The Register)

-- Universal Music Group is incorporating interactive games in some of its YouTube videos to keep viewers engaged and increase its share of revenue. Viewers answer questions about the video clips they are watching and move on to another clip with a correct answer. One should wonder what this will do to CPMs YouTube can get for its ads when viewers' focus will prevent their eyes from roaming around the screen. Will there be a separate "peripheral vision" CPM in the future? (Digital Music News)

-- Greg Sandoval asks if digital piracy has reached a tipping point. To no surprise, different interest groups have different opinions. But the article is a good overview of issues and recent developments. (CNET)