Now, will you stop spreading all these rumours about EMI and Warner Music wanting to merge? Because they're just not true. Or so say EMI. Though a cynic might say that when a major label denies its intention to merge, that means a deal is practically done.
Either way, EMI are denying media reports that suggest they are considering the 'merge with Warners' option. The most recent merger rumours follow reports that new Warner Music owner Edgar Bronfman Jnr is keen to pursue some kind of joint venture with the London based major - especially if Sony and BMG merge.
Bronfman recently told reporters that a music sector consisting of two large major record companies (ie Universal Music and a merged Sony BMG) and two smaller ones (ie Warners and EMI) would not be good for the industry at large. Some insiders reckon those comments were not intended to encourage EU officials to block the Sony BMG merger, rather to prepare them for an EMI Warners merger. The argument being that three equally sized major record companies is better than four majors of which two are so dominant.
With that in mind, some in the British media have been speculating that Warner EMI merger talks are not far away. The Times noted: "If the Commission is willing to go from five majors to four, it seems likely that it would accept moving from four to three".
While the Guardian quoted one industry insider as saying: "Lines of communication [between EMI and Warners] have remained open. The regulatory environment is more benign than it ever has been. If EMI were to leave £100m of cost savings on the table [by ruling out a merger with WMG], they would have to give a good explanation to shareholders."
But EMI yesterday insisted a merger with Warners was no longer on their agenda (the last set of plans for such a move were dropped after Bronfman bought out Warner Music). A spokesman for EMI said there are no current discussions going on between EMI and Warners and stressed that the company's management believe it can continue to compete successfully and profitably without a tie-up.