EMI is interested in buying major stake/all of Warner Music USA.

Business buzz this morning is that EMI is interested in buying major stake/all of Warner Music USA.

The following is just one link & I'm sure there are other more detailed stories if you search for them.

This could be VERY interesting from the Hi-Rez format viewpoint!!!

http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20030224/bs_dowjones/200302240012000003

PS from what I gather they are actually "In Talks"

 

Now Mew will destroy the entire Warner Bros. catalog as well.

 

Since when did EMI suddenly have all the money to act so interested? Last I knew EMI had financial woes....

 

If you can't beat 'em, buy 'em!!! This reminds me of Microsoft.

 

Say goodbye to what is left of Rhino! Say hello to Bob Norburg and Peter Mew, and Sonic Solutions. Say hello to lessened opportunity for new acts to get signed and higher prices. This would reduce the number of record companies to...(ulp!) four!

This could very well happen because AOL doesn't know or care about the record business, and never did. They are in enough trouble as it is, and don't need the extra baggage that came with Warner Music. I wish they would have thought of that before they hooked up with Time-Warner. I always knew it was a bad deal going in, but those were the days of merger mania and a bear market.

Maybe Arif Mardin will get his office back.

 

All I can say is that this is bizarre.

Not long ago, Time Warner were the ones trying to buy EMI, only to be shot down by the European Union for anti-trust concerns (it was approved in the USA). Where did EMI get all this money all of a sudden? The Beatles 1 and Norah Jones (Blue Note is part of the EMI-Capitol family)?

 

There is something more to this, and it doesn't sound good...

 

I recently read a local story about the executive who helped save Warner's from certain failure in the late 60's, early 70's. Can't remember his name, Hershfeild perhaps.

Anyway, when he got to Warner's they were bleeding red and he was amazed that the only thing keeping them alive was the music business. He stressed that the recording side was becoming the most important part of the business and how excited he was about being part of it. The guy helped turn around the movie division and when on to rescue Columbia Pictures after that.

I was struck at how drastically things have changed in a relatively short time. No one wants anything to do with record companies now.

Dan C

 

It also wasn't long about when BMG was trying to unload their record company onto EMI. Again, European anti-trust rules kept it from happening.
Dan C

 

The last I heard EMI and BMG were talking merger on an equal footing. So where's this coming from?

 

These are just rumours folks!!

- Gabe

 

Rumors for now, but there's bound to be some sort of huge music merger sooner than later. And it's no secret that AOL/Time Warner wants nothing to do with Warner Music.
The whole company is screwed up. The AOL merger was a disaster and once cocky AOL 'new media' kings are having to walk around with their tails between their legs. It was AOL's failures that has brought down the company. AOL will eventually be spun off or sold, no doubt about it.

Dan C

 

EMI has been trying to merge with anyone for the past couple years. Also, Vivendi wants to dump Universal.

 

You might be thinking of Lee Herschberg, Dan.

 

I believe that's correct.
He gave a lecture to some business students at the University of Wyoming. Wish the article was online, I'd post it.
Dan C

 

That's not exactly true. TW is not going to be so willing to let Warner Music go. The "rumours" a few weeks ago were that either TW or BMG were looking to by EMI, so I would take this latest tidbit as one of several rumours.

As far as AOL's failure hurting TW, you are right (although I blame the then top TW brass for letting this deal go through). However, 99.9% of the AOL brass has already been expunged from TW and the management in place is trying to right the ship. From what I gather from people I trust (I work for a company that is half owned by TW), TW is thinking ahead and while getting rid of Warner Music might sound like a good idea now, long term (when the music industry regains its muscle) Warner music will again become a profit center for the company.

- Gabe

 

If the companies were smart, they'd break off and start over. Lots of little companies like long ago! What an idea!