Sony BMG Loses EU's Merger OK
'The Envelope, CA
July 14, 2006
In an unexpected move that rocked the global music industry, one of Europe's highest courts Thursday threw out regulators' approval of the 2004 merger that created Sony BMG Music Entertainment, the second-largest music company in the world....
Sources at the companies said they would re-submit the deal for approval within a week. A decision could take as long as five months...
If that petition fails, executives may be forced to undo the partnership that collected $4.2 billion in revenue last year and was responsible for more than 25% of U.S. album sales. The Sony BMG combination reduced the world's major record companies to four and brought such artists as Aerosmith, Barbra Streisand and Elvis Presley under one roof...
"We may very well reapprove the Sony BMG merger," commission spokesman Jonathan Todd said. "But it's also possible that we'll reach different conclusion. We have more data about the merger now...."
July 14, 2006
In an unexpected move that rocked the global music industry, one of Europe's highest courts Thursday threw out regulators' approval of the 2004 merger that created Sony BMG Music Entertainment, the second-largest music company in the world....
Sources at the companies said they would re-submit the deal for approval within a week. A decision could take as long as five months...
If that petition fails, executives may be forced to undo the partnership that collected $4.2 billion in revenue last year and was responsible for more than 25% of U.S. album sales. The Sony BMG combination reduced the world's major record companies to four and brought such artists as Aerosmith, Barbra Streisand and Elvis Presley under one roof...
"We may very well reapprove the Sony BMG merger," commission spokesman Jonathan Todd said. "But it's also possible that we'll reach different conclusion. We have more data about the merger now...."
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