Green Light for Sony, BMG deal
p2pnet.net News:- The Sony-BMG merger is either definitely on, or on the verge of it, depending on whether your read Associated Press reports, or the UK’s Financial Times.
The merger between Sony Music and Bertelsmann Music Group “is poised” says the FT here, while AP, quoting ’sources,’ states unequivocally:
“The European Union’s antitrust chief decided Thursday to approve a merger between Sony Music and Bertelsmann AG’s BMG, sources familiar with the case said.”
“The decision came after two days of closed-door hearings in which the companies faced EU charges, supported by many small independent labels, that the deal would lead to higher CD prices, less choice for music lovers and stifle the development of on-line music stores,” says the AP report.
“Lawyers for the independent record companies that have opposed the deal are likely to meet Mr Monti today to warn of likely legal action if the merger is cleared,” says the FT. “They believe that the Commission’s economic analysis of the case may have been flawed from the outset.”
In December 2003, the two companies – both members of the Big Five record label cartel – signed a binding agreement to combine their recorded music businesses in a 50-50 joint venture which would give their resulting Sony BMG a combined global market share of 25.2%, just behindthe Universal Music Group’s (Vivendi Universal) 25.9%.
Andrew Lack, Sony Music Entertainment’s chairman and ceo, is slated to run Sony BMG, with Rolf Schmidt-Holtz, chairman and chief executive of BMG, as chairman of the board.
Neither the parent companies’ music publishing, physical distribution and manufacturing businesses, nor Sony Corp’s recorded music business in Japan, SMEJ, are included in the deal.
A US antitrust review is yet to come.
June 19th, 2004 at 6:28 am
This approval just shows what lobbying and a lot of money can buy.
The so called democracy is no longer real.
It has become financicry.
It is no longer one vote per person, but one vote per dollar (or euro in this case).