EMI To Acquire Chrysalis?
Is TerraFirma, the newly crowned owner of EMI in talks to buy the remaining assets of the Chrysalis Group? One look at Chrysalis stock price would indicate that there’s something brewing behind the scenes — it rose 10% in off hours trading after unconfirmed reports emerged about a bid for the music company.
What remains of Chrysalis has been on the market for almost a year — after it disposed of its radio station assets last year for $336 million. Guy Hands, head of TerraFirma, could be looking for a bargain to bolster morale at EMI after he announced a sweeping restructuring plan that will shed up to 2000 jobs by the summer. Chrysalis now comprises a music publishing division, a distribution business and the Echo record label. Chrysalis owns publishing rights for acts such as Leonard Cohen, Blondie, David Gray, David Bowie, and Outkast, among others.
The Future: If Hands can get the price he wants, Chrysalis would be a solid addition to the profitable catalog of EMI Music Publishing.
