December 5, 2008

EMI shopping for U.S. distribution pact

Terra Firma, the company that bought the British record label EMI last year, is in talks with some of its rivals about a U.S. distribution deal, sources say.

The Financial Times said the financially strapped company has approached Universal Music, Sony BMG and Warner Music about joining forces.

The contract to take over EMI's warehouses and distribution network could net Terra Firma between $20 million and $30 million, the Times said.