EMI confirms Bertelsmann talks

by Staff,, Brand Republic 13-Nov-00

LONDON - UK music group EMI has confirmed that it has been approached by German media giant Bertelsmann about a possible merger which could result in the formation of the world’s largest music company.

No formal offer has been made, but Bertelsmann and EMI executives are believed to have met with European Competition Commission officials shortly after EMI’s planned merger with Warner Music was abandoned when it looked set to threaten Time Warner’s merger with AOL.

A Bertelsmann-EMI music deal is unlikely to face as many regulatory hurdles as the EMI-Warner deal. However, it would still have to face the issue that a combination of EMI and Bertelsmann’s music division, BMG, would dominate the music industry.

The Commission said it would be seeking some creative solutions to this problem.