Surely time for another Sony BMG merger story? With the bigwigs at both Sony and BMG telling us how great the EU's decision to let them merge is, and more or less everyone in the independent sector still telling us how sinister it all is, some merger related gossip from the sidelines.
First up, and something of a sigh of relief from the other major labels, EMI, Warners and especially Universal Music. While none of the other majors were proactively supporting the Sony BMG merger, there were claims during the EU investigation that, merger or no merger, the major labels had too much dominance in the music space, and that some sort of regulation might be in order. By allowing the merger to go ahead with zero regulatory conditions, EC Commissioners essentially reject the need for wider regulation in the music business, which is good news for all of the majors. Recognising this fact an EMI spokesman told reporters yesterday: "We are pleased that the commission has not found collective dominance in the industry."
Talking of EMI, as the conclusion of the Sony BMG merger draws closer speculation rises regarding the possibility of an EMI Warner merger. As previously reported, some analysts reckon that the new four major labels system, where you have two big major record companies and two smaller major record companies, is much less stable than if you had three more or less equally sized record companies - ie Song BMG, Universal Music and a merged EMI Warner. On those grounds some say it would be hard for the EC to block any EMI Warner merger bid - despite having stopped the two majors merging in the past. New Warner Music owner Edgar Bronfmann Jnr - despite being the man who stopped the last round of EMI Warner merger talks when he stepped in at the last minute and bought Warner Music off Time Warner - has indicated he is interested in discussing a merger with EMI, and insiders say such a deal is high up his current priority list. Once again this week EMI said it was "not in discussion with Warner Music", adding: "We have a strong management team. We are producing high-quality music and we have the necessary scale in all regions", which almost certainly means merger talks are being considered!
And talking of Warner Music, rumours this morning surrounding former Warner boss Roger Ames - who is now working as a consultant for Bronfmann Jnr after being sidelined out of the Warner top job during the takeover. Word is that Ames has been offered a job at the merged Sony BMG, most likely to oversee international operations, an area where both merging majors have struggled of late. However, insiders say that any role for Ames at Sony BMG would have to be quite powerful because he won't be persuaded to join the company for purely financial reasons. With a $20 million pay off from Warner pending and an estimated existing fortune in excess of $100 million, monthly pay packet ain't too important for Mr Ames, therefore it would be ego that would clinch any deal.