by bgohara » Tue Feb 16, 2010 9:04 pm
EMI is owned by a private equity group, Terra Firma - whose business model has been to buy businesses where they see an opportunity to 'extract value' . Basically that means that they buy a business (such as a Utility company) using significant levels of bank finance - and then take as much 'cost' (ie people) out of the business or sell assets - before selling the new 'lean' company on at a huge profit, paying off their bank loans in the process. That's the theory anyway - but the general consensus is that Terra Firma paid too much for EMI - which is itself in a declining or at least a changing industry - so they're obviously keen to realise any proceeds from the sale of assets - hence the sale of Abbey Road.
In a sense, it doesn't really matter who owns Abbey Road now - because there would be no sentimentality from the current owners of EMI. We can only hope that any new owners respect its very rich heritage - and don't turn it into some tacky tourist attraction (or worse)
Bernie