EMI and Warner drop merger plans

Published: 2006-07-28
After offers back and forth between the two major labels for the past couple of months, EMI and Warner Music have decided to abandon plans to merge.

London-based EMI and New York-based Warner Music began courting each other a couple of months ago when EMI offered to buy Warner for $4.2 billion. According to the Associated Press, "Four proposals were made over the next several weeks, all of which were rejected."

The merger would have made the paired record companies the second largest record label in the word next to Universal Music, with 25% of the market share.

"But a ruling from the European Court of First Instance two weeks ago threw doubt over whether a merger between EMI and Warner would obtain regulatory clearance," the Associated Press revealed.

EMI's shares fell 4.1 percent after the news was released yesterday (July 27).

Writer: Michelle Garcia



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