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January 13, 2007

Thanks to EMI, the usually slow post-holiday period is a thrill a minute. Today, the New York Times' Jeff Leeds reported that EMI may be packaging itself for a sale.

"Analysts widely criticized the shift of (EMI Group chief Eric) Nicoli to a more operational role. Although has led EMI since 1999 but has no direct experience creating or marketing music. Many said they viewed the ouster of Mr. Levy as a precursor to a radical reorganization of the company and a new drive to explore a sale or merger."

I wonder why EMI would self-inflict the restructuring plan before a sale when its eventual owner would certainly put forth its own cost-cutting plan according to its vision for the future. If EMI merged with another company -- namely Warner Music Group -- its restructuring would take a different form than if carried out as a standalone company.

Bottom line: The executive change and restructuring are needed whether or not EMI is dressing itself up for a possible suitor.

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Posted by Glenn at 1:53 PM | | | EMI