RUMOR MILL
"EMI wishes to make clear that it has made no such payment or agreement" to buy out Carey.
Monday, January 7, 2002
CAREY STILL RECORDING FOR EMI
Company Says No Buyout Has Been Made
EMI squelched rumors Monday that it had agreed to pay pop diva Mariah Carey a lump sum to end her $100 million recording contract after her "Glitter" album underperformed.
Recent reports in many tabloids said the major label group had agreed to pay Carey off with as much as $50 million after "Glitter" sold only 2 million units, a Reuters report said.
"EMI wishes to make clear that it has made no such payment or agreement,'' EMI said in a statement.
Industry skeptics harshly criticized EMI for paying excessively when it signed Carey to a four-album deal last year, asserting that the 31-year-old singer was past her commerical prime.
The signing of Carey by former EMI topper Ken Berry and his ex-wife former Virgin chief Nancy Berry was big news. The singer’s personal troubles, high signing fee and retail woes certainly came into play in the dismissal of the Berrys from EMI. Rumors of Carey's possible departure from EMI started after Ken Berry was forced out replaced by Alain Levy.
The former PolyGram boss immediately set to work reviewing EMI's recorded music business in a move to slash costs.
Despite cutting some acts, including veteran David Bowie, EMI was questioned by analysts again about possibly cutting its ties with Carey after the diva only produced one album under her new contract.
"Glitter" was delayed after Carey suffered a breakdown last year and was then released on Sept. 11. Ill health also prevented Carey from promoting the album, resulting in a huge loss for EMI. Carey's previous albums such as "Music Box" have sold as many as 20 million copies.
Levy's strategic review of the business is due to be completed early this year, according to Reuters. EMI Chairman Eric Nicoli has said further job losses may be made while labels are expected to be restructured and rationalized.
Meanwhile, Levy bought $2.7 million worth of his company's shares on Friday (1/4). Levy, who has been trying to cut costs, bought 500,000 EMI shares at 370.94 pence through his family business Ilchester Investments Ltd., EMI said in a statement.
Investors are eager to hear Levy's recommendations when he wraps up his strategic review of EMI's global music business in the coming weeks.
Recent reports in many tabloids said the major label group had agreed to pay Carey off with as much as $50 million after "Glitter" sold only 2 million units, a Reuters report said.
"EMI wishes to make clear that it has made no such payment or agreement,'' EMI said in a statement.
Industry skeptics harshly criticized EMI for paying excessively when it signed Carey to a four-album deal last year, asserting that the 31-year-old singer was past her commerical prime.
The signing of Carey by former EMI topper Ken Berry and his ex-wife former Virgin chief Nancy Berry was big news. The singer’s personal troubles, high signing fee and retail woes certainly came into play in the dismissal of the Berrys from EMI. Rumors of Carey's possible departure from EMI started after Ken Berry was forced out replaced by Alain Levy.
The former PolyGram boss immediately set to work reviewing EMI's recorded music business in a move to slash costs.
Despite cutting some acts, including veteran David Bowie, EMI was questioned by analysts again about possibly cutting its ties with Carey after the diva only produced one album under her new contract.
"Glitter" was delayed after Carey suffered a breakdown last year and was then released on Sept. 11. Ill health also prevented Carey from promoting the album, resulting in a huge loss for EMI. Carey's previous albums such as "Music Box" have sold as many as 20 million copies.
Levy's strategic review of the business is due to be completed early this year, according to Reuters. EMI Chairman Eric Nicoli has said further job losses may be made while labels are expected to be restructured and rationalized.
Meanwhile, Levy bought $2.7 million worth of his company's shares on Friday (1/4). Levy, who has been trying to cut costs, bought 500,000 EMI shares at 370.94 pence through his family business Ilchester Investments Ltd., EMI said in a statement.
Investors are eager to hear Levy's recommendations when he wraps up his strategic review of EMI's global music business in the coming weeks.
