Quantcast
"Talks continue and we want to reach a conclusion as soon as possible."
——an EMI spokeswoman
EC MAY HAVE "SERIOUS PROBLEMS" WITH EMI-BMG MERGER
Companies Must Now Chop Down The Mightiest Tree In The Forest With A Herring
The British paper The Independent reported today (1/30) that merger talks between EMI and BMG have stalled after encountering serious problems with the European Commission.

EMI ran into similar problems during its attempted merger with Time Warner-owned Warner Music Group late last year. At the time, the EC demanded the two companies dispose of sufficient record labels to create a new competitor in the music industry. According to the Independent, those same demands are being repeated.

But a spokesman for Bertelsmann cited by Reuters said the company still believed it had a 50/50 chance at completing its proposed merger with EMI. Although no deadline had been set, the spokesman told Reuters that the talks were running according to plan.

An EMI spokeswoman said, "Talks continue and we want to reach a conclusion as soon as possible."

BMG Chief Rolf Schmidt-Holtz said the slow progress towards a deal was not just an issue of regulatory approval. "It's to do with everything," he told Tuesday's Financial Times Deutschland.

While concessions of some sort are expected to soothe regulatory concerns over market dominance, it is still unclear whether they would be too severe to impede a deal.

The Independent reported that EMI told Bertelsmann, BMG's parent company, that it would not be prepared to dispose of Virgin, one of its biggest labels, in order to facilitate the merger.

Bertelsmann earlier expressed confidence that it would have an easier time negotiating with the Commission's competition authorities compared to the EMI-WMG deal.

"Bertelsmann thought that because it was European it could succeed with the Commission where Time Warner failed," said one source. "That's now open to question."

REVENUE CHART:
DOUBLE DIVAS
The song we needed (6/4a)
IMPACTING NOW: THE PROMOTION COALITION
The buddy system in action (6/4a)
IN “BLACK LIKE ME,”
MICKEY GUYTON
NUDGES AMERICA’S CONSCIENCE
Making it real in Music City (6/4a)
A CHROMATIC TOP 20
Bringing joy to a world that desperately needs it (6/4a)
BROWN PUSHES FOR A "BEAUTIFUL" WORLD
Kane is able. (6/4a)
TUESDAY
THE SHOW MUST BE PAUSED
TIME TO REFLECT
TIME TO ACT
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)