p2pnet - rss feed: EMI, Warner merger?
p2p news / p2pnet: Are the members of the Big Four Organized Music cartel about to become the Big Three?
"Senior executives at EMI, the British record label, and its American rival Warner Music Group are preparing for preliminary talks that could lead to the creation of the world’s third-largest music company," says the Sunday Times.
"Sources close to both groups said the firms’ on-off discussions would resume in earnest within months, with advisers on both sides being briefed to prepare for merger talks."
But then again, even if EMI and Warner do tune up, the Big Three might revert to being the Big Four.
Germany’s Bertelsmann (BMG) is thinking about selling its half of Sony BMG.
Meanwhile, "EMI is understood to have lined up Citigroup and UBS to assist it, while Goldman Sachs and Lehman Brothers are in the frame to advise Warner," says the story.
"A merged company would be a threat to the two global giants of the music business, Universal Music and Sony BMG.
"Although no approach has yet been made by either company or its advisers, sources close to both said Th e, "deal’s going to happen," an identified source is quoted as saying.
"The only question is timing,” said one adviser this weekend.
The two companies have tried to get together twice before, but the marriage failed, "on regulatory grounds," says the Sunday Times, adding, "but the changing nature of the music industry has led analysts to suggest that a deal would now be viewed more favourably by competition authorities".
The Big Four are currently in trouble in the US over bribery and price fixing charges, and EMI and Vivendi Universal have just been accused of deliberately misleading the US Department of Justice.
(Thanks, Justine)
Also See:
Sunday Times - Warner and EMI ready to resume duet, April 23, 2006
thinking about - BMG end of SonyBMG for sale?, March 27, 2006
deliberately misleading - Record labels scammed DoJ, April 24, 2006
April 24th, 2006 at 10:14 pm
Well, there goes the American link in the Recording Industry Association of America. Wanna bet they still have a presence here and the name remains the same? It will be foreign in everything but recieving handouts.
This tolerance for allowing mergers has to come to an end. We are right back to where we were prior to the required breakup of major mega-corporations. There is no one guarding the henhouse and everyone is wanting to be the fox. Until we wake up and put a stop these sort of crazy ideas that bigger is better or that if they pay enough they can get favorable treatments in legislature to make happen what they wish, this sort of travisty will continue.
We need a change in the viewpoints in Washington and elsewhere in the world and this isn’t the one we need!