EMI on Failed Licensing Deal

WHAT HAPPENED? At 2 a.m. (ET) this morning, EMI Music apparently was putting the final touches on announcing a licensing deal with Universal Music Group. By 5 a.m. (ET), the deal was dead. What happened? Depending on who's doing the spinning, either UMG walked away (see below) or the EMI board turned down the deal, insisting it wasn't large enough to increase value for its artists or labels. Parent company Maltby and Terra Firma will continue with their plan to search for investors between now and June, the actual default date for loan payment of $190 million. Meanwhile, EMI's court case against Citigroup gets underway in New York Oct. 18. Stay tuned, folks. (3/31p)