EMI big cheese Guy Hands has reportedly told potential investors that they could quadruple their money in five years by investing in the major music firm. As previously reported, Hands' Terra Firma outfit, which acquired EMI earlier this year, is looking for other private equity types to share the risk as they look to reinvent the music company. According to the New York Post Terra Firm has told other potential investors that it plans to improve its investment into EMI by 2-4 times through a mixture of cost cuts, improved digital revenues and strategic acquisitions. Cost cuts will include a cut in A&R and marketing expenditure by using online social networks more to find and promote new talent. The investment types hope that a big boost in online and mobile sales will increase revenues, while acquisitions of or partnerships with live music and management firms will help turn EMI's fortunes round. If that all sounds like fun then get your pennies out and give Hands a call about putting some cash into the EMI pot.
Nov 14, 2007
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1 min read
Hands expects good return on EMI investment through cuts and digital boost
Guy Hands has reportedly told potential investors they could earn two to four times their money in EMI over five years via cost cuts, digital growth and acquisitions.