The Telegraph reported today that Terra Firma has bought itself a bit of time with Citigroup. EMI reportedly now has an extra three months to reach certain financial targets. (To what degree these goals are tied to Citigroup financing is a bit unclear. A December 2007 article at the Telegraph said the recorded music earnings goal was not tied to loan covenants.) The recorded music division has a goal of £180 million in EBITDA by September. About £100 million is expected to be saved from a restructuring that reduced the staff by over 2,000 employees.

The report said internal sources claim the original June goal of £150 million EBITDA will be missed. The recorded music division is on pace for £133 million, which means label bosses will not receive bonuses. Instead, the entire workforce is being offered a back-end bonus. When Terra Firma realizes the value of its investment (through sale of refinancing) the entire recorded music workforce will receive 15% of the division's equity. Publishing employees get a similar deal.

The article ends with a tidbit about an EMI strategy to merge its recorded music division with that of Warner Music Group.

Terra Firma is also understood to be sitting on a secret long-term plan, code-named Project Poker, to tie-up with listed US major Warner Music Group, merging their struggling recorded music divisions. No approach has been made to Warner, but the strategy would be to sell on some music publishing assets in order to avoid regulatory constraints.

The two companies have danced around one another for a number of years and have not been able to either merge or acquire the other. The two planned on merging in 2000, when Warner Music was still a part of Time Warner, but pulled out later in the year due to regulatory concerns. More recently the two companies made offers and counteroffers before EMI was eventually acquired by private equity group Terra Firma in May of 2007.

[music jobs] New York University is seeking a Department Chair for The Clive Davis Department of Recorded Music.