More merger rumours. As previously reported an EMI Warners merger is once again in the offing, though the position of the two partners has changed since the last time the two entered merger talks. This time EMI is looking to buy a majority stake in Warner Music, rather than the other way round, with Warners likely to consider being acquired rather than acquiring given the financial situation of parent company AOL Time Warner.
A report in the Wall Street Journal said talks had begun between the two majors, but that those talks were at "an early stage" and that any actual deal isn't that imminent. As previously reported industry insiders hope EU officials, who have blocked past major merger attempts on competition grounds, would not be so difficult this time round after the EU courts allowed the travel industry to consolidate into just three major players. EMI may well be forging ahead with merger talks now after its success at the Grammys - with EMI acts Norah Jones and Coldplay dominant on the night.
Neither side would comment on the merger rumours, though an EMI insider told the BBC: "The whole of the music industry is talking to the rest of the music industry and has been getting drunk with each other for the past three nights."
Reports of an EMI and BMG merger still circulate too, though BMG's recent takeover of Zomba may might that merger more difficult. Also EMI would probably have to give up more control in a BMG deal meaning a Warners deal is likely to be preferred.