In early 2007, EMI was a mess. The U.K.-based music company — the smallest of the four major labels — had lost $500 million in a year, its market share had slipped to nine percent, and marquee artists Radiohead and Paul McCartney had jumped ship.
When private equity firm Terra Firma bought the label for $4.7 billion in May, many speculated that CEO Guy Hands would dismantle the company, retaining the profitable publishing arm and back catalog. Instead, on January 15th, he announced a vast overhaul that he hopes will transform EMI into a smarter, leaner and more profitable company, offering the rest of the failing music industry a road map for the future.
When Terra Firma bought EMI, many in the industry accused Hands of attacking a business he didn't understand, and top EMI artists Robbie Williams and Coldplay complained when U.K. chief Tony Wadsworth was pushed out.
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