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Emi boss Roger Faxon could soon be a free agent.
With the breakup and sale of EMI moving along without a regulatory hitch, industry sources expect music rivals and even other media companies to make a play for the well-respected Faxon.
“There will be plenty of opportunities on the table,” said one source close to the label leader. “There are any number of media and non-media businesses who would be interested in getting him to lead their businesses.”
Speculation about his next move kicked into high gear last week, when European regulators approved Sony Music Entertainment’s $2.2 billion acquisition of EMI’s music publishing arm.
Once US regulators green-light the deal — the Federal Trade Commission decision could come in the next two weeks — Faxon can exit thanks to a clause in his contract, sources said.
Universal Music Group is still in the second phase of the European Union’s review of its $1.9 billion purchase of EMI’s recorded music business, which is set to end Sept. 6.
To be sure, Faxon has an incentive to stick around for another few months as he’s due to collect an $8 million bonus if he waits until both parts of the sale are completed even though his contract allows him to exit sooner, sources said.
Faxon, who boasts extensive film and TV experience, including a stint as the former chief operating officer at Lucasfilm in the early 1980s, would be a good fit for Warner Music, sources say.
Warner is owned by billionaire Len Blavatnik, who completed a leveraged buyout last year and clearly has ambitions to build his entertainment empire beyond music. Blavatnik’s Access Industries also has invested in a three-year movie fund with Harvey Weinstein’s Weinstein Co.
Warner Music, which lost out in the bidding for EMI, is run by Stephen Cooper, who is a turnaround specialist but not a music man at heart.
Executives close to Faxon and Warner Music insist there are no talks at the moment. Faxon is repped by big-shot entertainment lawyer Allen Grubman.
Few believe Faxon will land at either Sony or Universal, given that any available roles at either outfit would be a step down for an executive who’s been running his own show.
Faxon led EMI through a turbulent era under private-equity owner Terra Firma, which was forced to turn EMI over to bank lender Citigroup after hitting financial trouble. Citi decided to split EMI and sell off the pieces to larger rivals Sony and Universal.
Faxon, who took over as CEO in June 2010, managed to keep his cool while fostering EMI acts such as Katy Perry, Lady Antebellum and Coldplay.