EMI makes bid for independent label Chrysalis, despite concerns of late

Richard Driver — Mon, 21 Jan 2008 16:56:00 EST

Filed under: Deals, Rumors, Competitive Strategy

According to Billboard.com, privately-held music company EMI Group and chairman Guy Hands have made a bid for independent music company Chrysalis (LSE: CHS). The report is based on similar reports by the London Times and Reuters, and indicate that EMI is not the only company interested in the label, with publishing companies Warner Chappell and Sony/ATV making bids, in addition to some private equity firms and other music publishers.

The Billboard report seems aimed at pointing out the publishing rights that would be gained from the purchase, since Chrysalis' music publishing owns the rights to artists like David Bowie, Gnarls Barkley, Athlete, and recently entered a worldwide agreement with Johnny Marr, guitarist with cult 1980s act The Smiths, but perhaps better known to American audiences for working with Modest Mouse on the band's chart-topping 2007 album. Chris Wright, Chrysalis' founder and chairman has previously sold aspects of the Chrysalis name to EMI, with the Chrysalis Records label being sold in 1991. Chrysalis' main objectives since then have been publishing rights, recording, management, and distribution. A radio business was also part of the company until last summer, when it was sold for $340 million, so the company could "focus on its music companies."

Even though EMI is not alone in its bid for Chrysalis, the move hardly seems appropriate in light of the difficulties and new business models the company has been espousing recently. If EMI is successful in its bid for Chrysalis, it would really be another venture Guy Hands and private equity owner Terra Firma are making in the music industry, so the real question would be what kind of change does this mean for independent labels, or the methods utilized by independents. Unfortunately, the group would be absorbed by EMI or any other bidders, so the ramifications would become part of the larger company and not reflect the status of the independent. In any case, whether the rumor is accurate or not, Chrysalis' status and EMI's problems are going to be in the open.

EMI makes bid for independent label Chrysalis, despite concerns of late originally appeared on BloggingStocks on Mon, 21 Jan 2008 16:56:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up: Sallie Mae to cut 3% of employees

Eric Buscemi — Fri, 18 Jan 2008 08:00:00 EST

Filed under: Newspapers, Magazines, Apple Inc (AAPL), iPhone, SLM Corp (SLM)

MAJOR PAPERS:

UBS AG (NYSE: UBS) is launching an initiative to reduce proprietary risk taking by its investment banking division, the Financial Times reported. In an internal memo, UBS CEO Marcel Rohner wrote that the bank would cut by 50% the number of its employees in its real estate and securitization division, and move its troubled mortgage investments into a separate unit.

OTHER PAPERS:

The UK Times reported that British music company EMI Group PLC (OTC: EMIPY) has made a bid for Chrysalis, one of Britain's last big independent music companies.
Student loan giant SLM Corporation (NYSE: SLM), also known as Sallie Mae, said it would lay off 350 employees, or about 3% of its workers, the Washington Post said.
France Telecom (NYSE: FTE) CEO Didier Lombard said sales of Apple Inc's (NASDAQ: AAPL) iPhone device are going better than expected in France, the Associated Press reported.

Newspaper wrap-up: Sallie Mae to cut 3% of employees originally appeared on BloggingStocks on Fri, 18 Jan 2008 08:00:00 EST. Please see our terms for use of feeds.

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