Roger Faxon, EMI‘s CEO, explains to his staff the utter gutting being proposed for EMI during the dance between Universal and the European Commission. Read the full text of the memo at Hypebot:
Here is what is being proposed:
In the UK, an entity composed of the rosters and catalogues of Parlophone (excluding the Beatles, both as a group and individually), Mute, Chrysalis (excluding the Robbie Williams catalogue) and Ensign would be sold. Included in that disposal would also be the Pink Floyd catalogue and the recently concluded new deal with David Guetta, along with his catalogue. Note that these disposals only relate to exploitation of this repertoire within the EEA.
EMI Classics and Virgin Classics would also be divested in the EEA.
EMI‘s share of the NOW brand and compilation business in the EEA would also be sold. However Universal would keep its share and participation in the Now compilation venture.
The proposal also includes the divestment of a number of EMI‘s operating businesses in Continental Europe. Those local operating companies are EMI France, EMI Belgium, EMI Czech Republic, EMI Poland, EMI Portugal, EMI Sweden and EMI Norway.
Universal is also proposing to divest some its own businesses, principal among which are Sanctuary, Co-Op, and UMG Greece plus several European jazz labels.
They would also commit to terminate or not to bid for a number of high-profile European licenses for major Anglo-American and domestic repertoire, namely Disney Records, Hollywood Records, Ministry of Sound, and Restos du Coeur in France.
It is important to say that we have time – in fact quite a lot of time – to work through how all of this is going to unfold and how it will affect each of you and the artists we are so privileged to represent.