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Warner Music Proposes Take Over of EMI
February 20, 2007
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A new development for two particular RIAA (Recording Industry Association of America) members has emerged. In a potentially historic move, the Warner Music Group has "approached" EMI Group to make a bid to take over the company. Yet this is not the first time the two have tried to tie the corporate knot.

"Further to recent press speculation, EMI Group plc (“EMI” or the “Company”) confirms that it has received an approach from Warner Music Group. There is, however, no proposal currently for the EMI Board to consider. There can be no certainty that this approach will lead to any proposal or offer being made for the Company," EMI said in a statement.

The statement continued, "If a proposal is made, it will be considered with a particular focus on conditionality, the regulatory and operational risk profile, and on valuation in relation to the Company’s stand alone value and the value creation available from a combination."

Meanwhile, a press release issued by Warner Music Group stated, "Warner Music Group Corp. (NYSE: WMG) confirmed today, in response to EMI Group plc's ("EMI") announcement of earlier today, that it has approached EMI about a possible acquisition of the entire equity of EMI."

Warner explained further, "WMG believes that there is a compelling strategic, commercial and financial logic in a combination of the two companies and that such a combination should maximize benefits for the shareholders of both companies.

WMG's approach to EMI, however, remains in the preliminary stages and there can be no certainty that the discussions will result in any specific transaction."

There hasn't been such a move amongst RIAA members since Sony and BMG merged which caused "the big five" to become "the big four". Now, it may seem as though "the big four" will become "the big three". However, no one is holding their breath, as talks of a merger have circulated for the better part of three years.

This story is filed in these Slyck News categories
Entertainment Industry :: Other

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