Do you remember the days when there wasn't a big EMI story every single day of the week? No, me neither. Today's big story is that new EMI boss Guy Hands has now made a bid to acquire Chrysalis Music, one of UK's bigger independent music publishing houses, which owns the publishing rights to songs by the likes of Blondie, Leonard Cohen, David Gray, Roy Ayers, Siouxsie & The Banshees and early David Bowie.
As previously reported, Chrysalis has been through its own significant restructuring in the last year, most notably selling its radio division to Global Radio. Following the business review that led to the radio asset sale, the company's board have also let it be known they may consider offers for the company's music assets, in particular its publishing catalogue.
Of course through his purchase of the EMI Group, as well as acquiring the somewhat troubled EMI recorded music company, Hands also became owner of the world's market leader music publishing firm. His interest in Chrysalis suggest that while the new EMI owner is keen to initially streamline the recordings business, growth is the short term aim in publishing. However, he'll find growth through acquisition in the stronger publishing sector harder, because there will be more competition in every sale, from rivals in both of his businesses - ie Terra Firma's private equity competitors, and EMI Music Publishing's major rivals, in particular the acquisition hungry Warner Chappell and Sony/ATV. Plus Chrysalis founder and Chairman Chris Wright is known to value his publishing company highly and, while open to a sale, is reportedly willing to delay any deal until the market can deliver the best possible price.
EMI and Terra Firma are yet to comment on their interest in Chrysalis Music.
Just to ensure there's no confusion, by the way, EMI already own the Chrysalis record label, not that it really exists anymore. Chrysalis' original recorded music company was sold to EMI in 1991. 'Chrysalis Records' became a division of the major for a few years, before being rebranded as EMI:Chrysalis. The Chrysalis name was later dropped altogether, so that former Chrysalis artists are now released under the EMI Records banner. Except, I think, Robbie Williams who, if I remember rightly, is still officially a Chrysalis artist. None of this should be confused with Echo Records, the small label established by the Chrysalis Group after the sale of Chrysalis Records to EMI, which was most prolific in the late nineties, and which now operates primarily as an 'incubator label' for Chrysalis Publishing's singer songwriters. No word on what would happen to Echo should Chrysalis Publishing be acquired by a major publishing house.
Elsewhere in EMI news, the Times reports that Hands will continue to be, erm, hands on at the major throughout the upcoming restructuring, which is now expected to take six months. Word has it the Terra Firma chief had originally intended to appoint an EMI Group CEO to take on day to day control early this year, but consensus is that he won't now recruit a Chief Exec until after the big downsize is complete, possibly so the company's new leader doesn't get tarnished by all the bad shit that's about to happen. It will be interesting to see who does become CEO in the summer though - ie whether Hands will recruit a music business veteran, or another outsider.