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News
Terra Firma to Buy EMI
Monday, May 21st, 2007 at 4:00 PM - by Jeff Gamet
The British music label EMI - the same company that agreed to sell copy protection-free songs through the iTunes Store - has reached a buy out deal with the private equity group Terra Firma. The company will buy EMI for £2.4 billion (about US$4.73 billion), and will likely leave EMI’s management team intact, according to Reuters.
The deal with Terra Firma means that EMI is effectively protected from Warner Music. The competing label was also maneuvering to try and buy EMI - a move that could have potentially altered EMI’s plans to sell music online without copy protection schemes in place.
The deal still needs to be approved by shareholders and government regulators. If approved, EMI will most likely be able to continue with business as usual.
EMI is the world’s third largest music label and distributes albums from many well known artists and bands including The Beatles. The company has committed to offering its entire music library without copy protection, and DRM-free tracks are scheduled to start appearing on Apple’s iTunes Store some time in May.
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