Beatles Bailout EMI As Usual

What's a bailed out bank doing in the recorded music business? During the high flying days of banking, Citigroup loaned Guy Hands' company, Terra Firma, billions to purchase EMI. Neither company knew anything about music. As you can guess, things went south. The banking crisis and the music business collapse makes this loan look questionable.

Citigroup wants to get their money back. Selling EMI to Edgar Bronfman and his Warner Music Group is the easiest way to accomplish that. But that leaves Guy Hands and Terra Firma out in the cold. Seems Hands and his company wants to hang on and get better terms. So to continue to repay the huge debt, EMI had to meet certain monetary considerations set by Citigroup.

It seems EMI's recorded music division just squeaked by, and barely passed the bank's financial status test, so they can continue to operate for now. So as it has in the past, the Beatles catalog bails out EMI. This Robert wonders how long can this go on? So does the patient Mr. Edgar Bronfman.

Guy Hands, Sour Grapes

Well, Well, Guy Hands you don't give up easily. Seems your company Terra Firma is suing Citigroup over the purchase of the EMI music company. You claim the banker, who lent your company money to buy a wonderful company back in 2007, lied to you. Your law suit also alleges that naughty Citigroup isn't lending EMI any more money so those sleazy bankers can make more money from patient Edgar Brofman's Warner Music Group by letting EMI go broke. Is this sour grapes Mr. Hands? Guy, I told you, you were in over your head. Your company paid too much, the economy tanked, and you don't know anything about the tricky music business. This Robert wonders, maybe Citigroup is right, someone else should be running EMI.

Neil, Caught in the Middle?

Mr. Neil Young, I see you're caught in a technological conundrum. You want to show the auto business new ways with your wonderful electric car. I congratulate this bold step.

But when it comes to YouTube technology, Mr. Young, are you showing some old show business ways? Warner Music Group, your record company, is negotiating for more money for themselves by removing their music from YouTube.

This Robert agrees with their right to have your music removed. This Robert read your blog and agrees: "It is time for industry wide standards of artist's compensation on the web."

Robert just wonders how much truth there is in YouTube's response, "It is the record labels' responsibility to represent and pay their artists."

Mr Young, does this mean Warner was collecting money from YouTube and not paying you?