Feeds

BMG attempting to merge with EMI

Team-up would reinforce Napster alliance

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Germany media giant Bertelsmann, which wants to buy Napster, also has its eye on EMI, the British music company said today.

The two companies are in early talks, EMI told the London Stock Exchange, with the plan centring on a merger between EMI and Bertelsmann subsidiary Bertelsmann Music Group (BMG).

EMI and BMG are two of the five global recording companies known as the 'big five'. During the autumn, EMI was lined up to merge with fellow 'big five' company Warner, itself part of Time-Warner, which is due to join with AOL, US anti-trust regulators permitting.

The EMI-Warner deal collapsed after European Commission officials rejected the merger because of the AOL connection. Without that company's involvement, a BMG-EMI deal has much more chance of success, though BMG's links to AOL through AOL Europe shouldn't be ignored.

BMG's interest in EMI emerged last month in the aftermath of the failed EMI-Warner deal.

The motivation between the merger talks appears to be to cut costs and grow content catalogues as the music business prepares for a far more Net-centric future. BMG's decision to work with Napster and its music-sharing distribution paradigm rather than fight against an apparently unstoppable tide shows it to have rather a more canny, pragmatic view of the world than many of its fellow labels.

But for the BMG-Napster alliance to work, it needs support of the likes of EMI, Sony and Warner - fellow 'big fiver' Universal seems implacably opposed to it. Buying one of the three would build sufficient critical mass to persuade the others, all of them apparently unsure as to the best course to pursue. Sony is too big to buy, and AOL is unlikely to want to offload Warner, not when it too sees big profits in online music distribution, so that leaves EMI.

At this stage, BMG's approach to EMI seems tentative, as they explore whether they could come together before deciding how the merger would work. ®

Related Stories

AOL, Time Warner agree to next set of concessions
BMG, Napster deal damned by Universal
BMG alliance may hinder Napster cloners
Napster makes sweet music with Bertelsmann
Fresh suitors eye EMI after Warner merger collapses
AOL, Warner, EMI fail to calm Euro merger fears

Choosing a cloud hosting partner with confidence

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.