EMI and Warner Music Drop Merger Plans
The Envelope, CA
July 27, 2006
EMI Group and Warner Music Group today said they have dropped plans for a multibillion-dollar global music merger in the wake of uncertainty created by a European court's decision to undo the deal that created Sony BMG Music Entertainment...
The merger of the two companies came under question after the ruling by the European Union's Court of First Instance that regulators had made a "manifest error" when they approved the 2004 combination of Japan's Sony Corp. and Germany's Bertelsmann. The court found that regulators did not sufficiently investigate whether the combination would create a monopoly.
Sony and Bertelsmann - which sell music created by such industry legends as Aerosmith, Barbra Streisand and Elvis Presley - have said they will challenge the decision, which was issued in response to a complaint filed on behalf of 2,500 independent music labels. A decision could take as long as five months...
July 27, 2006
EMI Group and Warner Music Group today said they have dropped plans for a multibillion-dollar global music merger in the wake of uncertainty created by a European court's decision to undo the deal that created Sony BMG Music Entertainment...
The merger of the two companies came under question after the ruling by the European Union's Court of First Instance that regulators had made a "manifest error" when they approved the 2004 combination of Japan's Sony Corp. and Germany's Bertelsmann. The court found that regulators did not sufficiently investigate whether the combination would create a monopoly.
Sony and Bertelsmann - which sell music created by such industry legends as Aerosmith, Barbra Streisand and Elvis Presley - have said they will challenge the decision, which was issued in response to a complaint filed on behalf of 2,500 independent music labels. A decision could take as long as five months...
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