EMI rejects billions...Again
Music moguls EMI reject takeover from rival giants Warner Brothers.
EMI Group PLC have rejected a $4.5bn bid from Warner Music. Last Tuesday saw the latest bid in a six year struggle by one music company trying to take over the other. The bid was described as 'wholly unacceptable' by EMI.
Warner and EMI have been in talks of a coalition for the last six years in an attempt to create a smaller world-wide music market, reducing the 4 world-wide companies to 3. If a merge was formed the company would be the second largest in the world. If the two companies were to form a combination the company would form a total 25% of the music market. Bids so far have all been in the billions, showing the extent the companies are willing to go to. Behind only Universal, the companies see the potential to make big money. Especially when the two companies are centralised in the UK (EMI) and the USA (Warner), creating an even larger market for the major acts in the world. However both companies recognise that one company needs only one manager. If the companies were to combine it would see the end of one of the managerial positions with the highest bidder taking over the top positions within the new combined company. At this stage in the companies tug-of-war, a take over is inevitable as neither company is prepared to stand down just yet. Neither company is willing to submit to other and loose its power and the bids so far have not been sufficient in relation to the amount of money that Warner Records acts, including Madonna and Greenday, and EMI acts, including rock giants Coldplay, could make in the future.
Warner and EMI have been in talks of a coalition for the last six years in an attempt to create a smaller world-wide music market, reducing the 4 world-wide companies to 3. If a merge was formed the company would be the second largest in the world. If the two companies were to form a combination the company would form a total 25% of the music market. Bids so far have all been in the billions, showing the extent the companies are willing to go to. Behind only Universal, the companies see the potential to make big money. Especially when the two companies are centralised in the UK (EMI) and the USA (Warner), creating an even larger market for the major acts in the world. However both companies recognise that one company needs only one manager. If the companies were to combine it would see the end of one of the managerial positions with the highest bidder taking over the top positions within the new combined company. At this stage in the companies tug-of-war, a take over is inevitable as neither company is prepared to stand down just yet. Neither company is willing to submit to other and loose its power and the bids so far have not been sufficient in relation to the amount of money that Warner Records acts, including Madonna and Greenday, and EMI acts, including rock giants Coldplay, could make in the future.