Terra Firma To Sell EMI!
I saw this article over on The Times and thought it was very interesting to see a company pay too much for another company in which they have no idea about the industry or how it works.
The Times reports that Terra Firma who recently purchase EMI, are currently looking to sell off 15% of the company and have also set a target to exit the entire business within 5 years.
It is also reported that Terra Firma expects to increase profits to 528 million pound by 2012, from 61 million today. The majority of that increase will be because of cost cutting measure that will be in place.
There has been a lot of talk in the past few months on whether Terra Firma paid too much for EMI and with them already getting a quick exit strategy in place maybe they should just have steered clear of the music industry in the first place!
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