p2pnet - rss feed: EMI says No! to Warner offer
p2pnet.net news:- It’s back to Square One (or is it Square Five?) for Canada’s Edgar Bronfman and Warner Music in their efforts to turn the Big 4 music cartel into the Big 3.
“Warner Music Group Corp. confirmed today, in response to EMI Group plc’s (’EMI’) announcement of earlier today, that it has approached EMI about a possible acquisition of the entire equity of EMI,” said Warner in a statement, last month.
But, “EMI Group Plc, the world’s third- largest music company, rejected a 2.1 billion-pound ($4.1 billion) takeover bid from Warner Music Group Corp. as too low,” says Bloomberg News, going on:
“The rejection extends the maneuvering between two companies struggling with declining music sales and piracy. EMI and Warner abandoned $4.6 billion offers for each other in July on concern a combination would be blocked by European Union regulators.”
EMI’s board, “concluded that it is not in the best interests of EMI shareholders to entertain a pre-conditional offer which would entail prolonged regulatory uncertainty and unacceptable operational risk at a critical time for the company,” EMI said in a statement, according to Reuters.
“The board also regards a price of 260 pence per share as inadequate, having regard to the stand-alone value of EMI, the synergies available from a combination with WMG and the risks identified above.”
EMI said the proposal from Warner would, “entail prolonged regulatory uncertainty and unacceptable operational risk at a critical time for the company,” says Bloomberg, continuing, “Some analysts said the renewed bid by Bronfman, 51, would have a better chance this time because Warner has the support of the Independent Music Publishers and Labels Association or Impala, a trade group whose opposition to Sony BMG led the court to order the review of that deal.”
Big Music has, “struggled in recent years as the growth in legal downloading has not made up for the slide in physical sales, but EMI has been hit particularly hard, with the poor performance of new releases such as Williams’s ‘Rudebox’,” says Reuters.
And perhaps the abandonment of major label ‘product’ by disgruntled former customers also has something to do with it.
Also See:
possible acquisition - Warner Music wants to buy EMI, February 2, 2007
Bloomberg News - EMI Rejects 2.1 Billion-Pound Proposal From Warner, March 2, 2007
Reuters - EMI rejects Warner Music’s bid proposal, March 2, 2007
disgruntled former customers - It’s March! RIAA boycott month!, March 1, 2007
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Tired of being treated like a criminal? They depend on you, not the other way around. Don’t buy their ‘product’. Do bug your local politicians. Use emails, snail-mail, phone calls, faxes, IM, stop them in the street, blog. And if you’re into organizing, organize petitions, organize demonstrations and then turn up on your local political rep’s doorstep, making sure you’ve contacted your local tv/radio station/newspaper in advance. Don’t just complain. Do something!
