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WEMI again

WHITHER WEMI—2010 EDITION: Seems like we’ve been speculating about Warner Music and EMI getting in bed together for a decade… Come to think of it, we have—and we’re not done yet. The latest round of talk was started by one of the stars of this series, Edgar Bronfman Jr., who bluntly stated to analysts on yesterday’s earnings call that “We feel consolidation certainly is possible.” The WMG chief further noted that the regulatory climate hadn’t hardened since the EC approved the Sony BMG merger in 2007, and that he hoped EMI would be able to “resolve its difficulties” in a way that strengthened the music industry. Bronfman’s remarks gained traction when ft.com picked them up, along with the assertion by Pali’s Rich Greenfield that “They are marching towards a transaction of some sorts,” pointing out the company had been “hoarding cash” over recent quarters and could find “hundreds of millions of dollars” in savings from such a deal. The only surprise in the story is that Financial Times media reporter Andrew Edgecliffe-Johnson, who wrote it, stated that Katy Perry is on WMG. D’oh. (2/10a)

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