EMI in Serious Debt, to be Bought by Apple?
Reports on EMI's financial problems are surfacing after they failed to sell North American distribution rights to Universal or Sony. The label, home to the Beatles' recordings, intended to offer a five-year licensing contract to the record label rivals in the hopes of raising $304 million. However, an anonymous source said the deal fell apart since the labels couldn't agree upon a price.
EMI is left struggling to raise $183 million by the middle of June in order to meet their loan commitments with Citigroup. If they are unable to raise the funds in time then Citigroup could seize the label meaning the label gets sold or is broken up.
