Yesterday’s Observer reported that major label EMI may reopen merger talks with Warner Music. Following the merger of Universal and Polygram nearly five years ago rumours were rife about further mergers between the remaining five major entertainment companies. EMI pursued mergers with both Warners and BMG, but plans were scuppered by EU competition legislation – with EMI unwilling to sell off its Virgin Records division as the EU commission demanded in order to let a merger take place. But the major labels reckon they may be able to defeat competition authorities after a European court ruled that EU competition officials were wrong to prevent travel company Airtours from buying rival First Choice. At the time competition commissioner Mario Monti blocked the deal primarily because it would have left the holiday market dominated by just three main players, the EMI mergers were blocked because of fears it would leave just four major players in the music business. But insiders reckon that if three players is now acceptable for the holiday industry it will be harder for authorities to object to a similar situation in the music industry.
Jun 24, 2002
•
1 min read
EMI and Warner merger may be back on
The Observer reported that EMI may reopen merger talks with Warner Music, as major labels hope a European court ruling could weaken competition objections.