Last week, reports suggested EMI was looking to license its catalogue to one of its major label rivals in the US, to generate a lump sum to help it meet its upcoming covenant test with Citigroup. Now the Wall Street Journal is reporting that the prospects of a deal are fading. It cites ‘people familiar with the matter’ as saying that WMG never entered talks, UMG backed away last week, and that Sony Music is “close to bowing out”. The alternative would be to raise £120 million from existing investors, or risk Citigroup taking control of EMI, breaking the company up and selling it.
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