Warner Music approaches EMI in possible takeover bid

“British music company EMI Group announced Tuesday it has received an approach from Warner Music Group that could lead to a possible takeover. But EMI said it had not received any firm acquisition proposal,” CNBC and Reuters report. “The news is the latest twist in a seven-year battle in which the two music groups have tried to buy each other.”

CNBC and Reuters report, “EMI and Warner Music first tried to merge in 2000 and again in 2003. Last year, they were locked in a $4.6 billion battle to buy each other, but hopes of a deal were quashed in June when a European court annulled approval of the 2004 merger of Sony’s Sony Music and Bertelsmann’s BMG. That ruling cast doubt on whether EMI and Warner Music would get regulatory clearance, and the companies abandoned talks until there was more clarity from antitrust regulators.”

Full article here.

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9 Comments

  1. If a Warner / EMI merger was abandoned last year because of the probability that EU regulators might not allow it ( after the Sony & BMG merger was banned ), what has changed to make a merger possible now ?

    Warner aren’t doing very well at the moment, their profits have tumbled alarmingly. I would have thought that a different company altogether would try to buy EMI. EMI’s value is about $3.5 billion. Anybody know of any companies with that sort of loose change and an interest in the music business ?

  2. EMI’s quasi support of DRM-less music sales probably has the other big labels extremely concerned and probably had the effect of lighting a fire under their heinies to do something about it.

    It’s becomimg more and more obvious that the labels are terrified of a DRM-less future. Probably because it means they won’t be able to make the kinds of profits they used to. They’ll still make money…just not the tens and hundreds of millions like they used to.

    The tools are in place, and the networks/infrastructures are in place.

    Now it’s time for the artists and music creators to take control over their creations…and put the suits and beancounters in THEIR place.

    MDN word: progress. Man, you just can’t make that up.

  3. AlanAudio…

    I have consistently promoted the idea that Apple should acquire one of these two, especially EMI, out of the loose change down the back of the sofa in Steve’s office.

    $3.5 billion to disrupt the entire music industry, whilst becoming a major force in that industry strikes me as a bargain.

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