What happens next with Warner Music Group and EMI?  Guys Hands, Terra Firma, and Citigroup are sitting on a toxic asset, one whose debt payments and financial liabilities are monstrous.  “Forget about their quarterlies, EMI is all about debt right now,” one major label executive shared with Digital Music News.  That demands resolution, and potentially paves the way for a Warner Music Group acquisition.  In fact, that was posited last week by Citi analyst Jason Bazinet, whose unexpected ‘buy’ rating on Warner helped to push the stock into the $5-range.

The whole thing was a bit too cozy for some, though Warner Music certainly has more firepower with a bumped-up share value.  And Bazinet prompted a multi-day buying spree on WMG.  Meanwhile, speculation continues to surround a possible sale of EMI Music Publishing – the darling in this mess – to the new Bertelsmann-KKR joint venture.  That catalog is amongst the most prized in the industry, and would undoubtedly fetch a handsome price tag.  Shares of Warner Music Group (WMG) continued to elevate on Monday.