EMI vs. Warner Music - the Takeover Tug-of-War
EMI rejects $4.6 billion offer from Warner Music
A six year confrontation between British music label EMI and US rivals Warner Music Corp. has come to a head (again) after EMI turned down a $4.6 billion offer from Warner, deeming it "wholly unacceptable."
However, this is only a repeat of events that occurred in 2000, when EMI offered Warner a $4.2 billion takeover...and were refused.
They are respected and powerful companies already, what with EMI owning world-famous acts such as Rolling Stones and Coldplay and Warner being credited with Red Hot Chilli Peppers and Madonna.
Both companies agree that a merge would ensure maximisation of profit in today's music industry, which is "plagued" by illegal downloading and increasing unauthorised copying of music. Indeed, a combined EMI and Warner would make up 26.4% of the music market, therefore becoming the second largest music record label behind Universal.
Business analysts suggest that Warner will end up winning the battle, but rumours are also flying that Warner could merely be 'playing hardball' before selling out.
However, this is only a repeat of events that occurred in 2000, when EMI offered Warner a $4.2 billion takeover...and were refused.
They are respected and powerful companies already, what with EMI owning world-famous acts such as Rolling Stones and Coldplay and Warner being credited with Red Hot Chilli Peppers and Madonna.
Both companies agree that a merge would ensure maximisation of profit in today's music industry, which is "plagued" by illegal downloading and increasing unauthorised copying of music. Indeed, a combined EMI and Warner would make up 26.4% of the music market, therefore becoming the second largest music record label behind Universal.
Business analysts suggest that Warner will end up winning the battle, but rumours are also flying that Warner could merely be 'playing hardball' before selling out.