Yep, more merger news, you lucky people. Well, as expected (though 24 hours ahead of schedule), officials at the European Commission yesterday gave the go-ahead to the merger of Sony and BMG - the second and fifth biggest record companies in the world. Both majors confirmed they had been given the green light last night - an official announcement is expected from the EC later today.
Despite strong objections to the merger from the independent sector, in the end the deal was passed without conditions. Those against the merger said the merger would make Sony BMG too dominant a player in the music space, leading to an increase in CD prices and a decline in consumer choice. But European officials did not agree with those claims, instead supporting the major record companies who claimed the merger was essential for them to survive in an increasingly competitive industry.
Announcing they had won EC approval for their merger, Sony boss Andrew Lack told reporters last night: "We're pleased that [EC officials] have recognized that the creation of Sony BMG is an appropriate and necessary response to current market conditions".
Lack will now head up the new company - to be called Sony BMG - from an HQ in New York. BMG boss Rolf Schmidt-Holtz will be chairman of the new company. The merger will now go before US competition officials who are expected to quickly approve the deal. How the merger will then impact on the music industry remains to be seen, though a cull of both jobs and roster at the newly formed Sony BMG is sure to be the first tangible affect.