| Warner wants to buy EMI, independent labels approve |
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ArsTechnica: EMI announced today that it has been approached by Warner Music about a possible buyout in a move that would increase industry consolidation. After some days of press speculation about a possible deal, EMI finally admitted that talks were ongoing, but insists that no deal is yet on the table. Note the phrase "regulatory and operational risk profile." EMI and Warner are both keenly aware of the risk that regulators, especially those at the EU, would frown on another major consolidation in the industry. The EU's Court of First Instance already rejected the Sony/BMG merger last summer, largely due to complaints bought by Impala, a consortium of independent labels. To make sure that doesn't happen again, Warner has already approached Impala and signed a deal designed to ensure that Impala would support any Warner/EMI merger. Impala, which is thrilled by the deal, says that Warner has agreed to three general principles in the event of any merger: 1) "behavioral undertakings" that would boost competition in the market, 2) divesting itself of some acts, and 3) supplying financial assistance to the independent music labels, especially the new Merlin initiative that will make the indies into a "virtual" fifth major label. Add this page to your favorite Social Bookmarking websites          Add your comment
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