Why don't all the majors just merge into one giant company and be done with it? Oh, cos the European authorities wouldn't let them. Anyway. More merger talk. This time AOL Time Warner and Bertelsmann - both of whom have been having a difficult time financially of late - are said to be seriously considering merging their music operations to create a group on par with Universal Music. According to the Wall Street Journal a merged BMG Warners Music Group would be equally owned by both sides. The deal would probably only involve recorded music - the Group's respective publishing businesses remaining apart.
Although sources told the Journal there is still much work to be done word is these talks are considerably further advanced than recent considerations by both BMG and Warners to merge with London based EMI.
Sticking problems in the talks will include the 50/50 arrangement (Warners' catalogue is probably somewhat more valuable than that of BMG) and who should run the merged company. Then there's the problem of getting it past EU competition authorities. While it is generally excepted that recent mergers in other industries will dilute most of the EU's previous concerns (which blocked an EMI / Warners merger) they may object to the BMG and Warners deal so soon after BMG bought out the Zomba empire.