EMI/Warner Music Group Deal "On Ice," BMG Publishing Sale On Pace
The NY Post's Tim Arango today called an EMI/Warner Music Group deal "on ice" a week after a European court overturned an EU decision to approve the 2004 merger of Sony and BMG.
Although EMI chairman Eric Nicoli said last week the Sony BMG decision had no bearing on its efforts to acquire WMG, Arango was told by sources that "Nicoli and those close to him have realized that a deal anytime soon is farfetched" and that talks will not resume until the Sony BMG issue is resolved by the EU.
Yesterday a Hits piece on the merger matter and outlined the time table for a resolution. The review process would not begin until September and would take at least four months, meaning that Sony BMG would not get regulatory approval or denial until early 2007. That means EMI and WMG would postpone talks in earnest until that time.
Today Bertelsmann said it does not expect the sale of its BMG Music Publishing to be affected by by the decision against Sony BMG. Some have been worried that the court's decision was a harbinger of greater scrutiny to come, and that attempts by WMG, Universal Music Group and EMI to increase their publishing businesses would be hampered.
[music jobs] HR Manager at EMI NA; New York, NY.
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