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EMI takes steps in US to put major back on track.
EMI has taken the first step towards revitalising its US operation with the merger of its Capitol and Virgin divisions.
EMI Group chief executive officer Eric Nicoli acted quickly after flying into New York from Midem last Tuesday, announcing that the major's Capitol and Virgin interests would come together as The Capitol Music Group.
The frontline pop, rock and urban label group will comprise the Capitol and Virgin Records imprints, with Jason Flom as chairman and CEO. Flom, who joined EMI as chairman and CEO of Virgin Records America in November 2005, reports directly to Nicoli and will now oversee the combined Capitol and Virgin rosters in the US. The move sees Capitol's president and CEO Andy Slater step down.
The move to bring its US company back into profit forms part of Nicoli's plan to deliver #110m worth of savings to EMI worldwide and create a new "delayered" structure. In his new role, it is understood that Flom will also form part of a new global executive team - comprising Nicoli, new EMI Music International president Jean Francois Cecillon and EMI Music UK & Ireland chairman/CEO Tony Wadsworth - which is likely to meet every two or three months to identify priorities and ensure they are delivered.
The move comes two weeks after Alain Levy and David Munns were fired as chairman/CEO and vice-chairman respectively. Their removal was attributed partly to the ...
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