BACK2THEFRESH (AP) You’ve heard about EMI right? You know the company that Citigroup (An American bank who’s largest single share holder is Saudi Prince Alwaleed, who just invested a 300 million dollar stake in twitter) put on the market after Guy Hands fell behind in payments on? Well after it was placed on the market Russian born billionaire Len Blavatnik purchased it month’s ago. But now the plot thickens.
Universal Records which is one of the two companies that Groove Shark is accusing of conspiring against them, has thrown their hat in the ring! They are on the verge of taking over EMI for £1.2 billion. Smaller record labels aren’t too fond of that idea because they are claiming Universal Records will then have too much power after that. This reminds me of RailRoad Cartels where the 4 major railroads faced opposition from shipping companies because they also feared they would have too much power. I don’t see the problem with Universal Records purchasing EMI. I mean no one had a problem with Len Blavatnik purchasing it even though he had already taken control of Warner Music Group.
Personally I think it will be a great move for Universal Records. Buy when the price is low. £1.2billion is a steal considering the fact that Guy Hands initially purchased it for £4.2 billion. Plus you can’t lose with artist like Lady Gaga, Rihanna, and Katy Perry.