Well, it was quite a dance, but Warner Music Group and EMI have announced they are done courting each other. Impala's successful bid to force the EU to take another look at the Sony BMG merger of 2004 has had a chilling effect on the two smaller majors' aspirations to purchase the other.

From Warner Music Group's press release:

"WMG will monitor the situation carefully, but until matters become clearer, for instance as a result of the re-review of Sony BMG by the European Commission or through an appeal to the European Court of Justice, WMG does not believe that it would be prudent to pursue a combination of WMG and EMI. Accordingly, WMG does not intend to make an offer for EMI at this time."

EMI's press release prefaced by outlining the Sony BMG ruling and its two unsuccessful bids:

"Against this background, the Board of EMI has decided not to pursue a combination with Warner Music for the time being. The Board will review this position in the light of future developments.

Both companies stated that they're leaving the door open to revisit the topic of an acquisition, but for 2006 any further talks look to be completely over. In the short term, both companies can get on with their 2006 release schedules and employees can stop worrying about being caught in the downsizing net.