Time Warner and EMI scrap merger
Time Warner and UK-based EMI Group have abandoned their proposed plan to combine their respective music interests to appease the European Commission.
The commission was reported to have wanted to block the proposed deal, partly because of the Time Warner’s plan to merge with America Online (AOL), which it feared could create a superpower in the online music distribution market.
Time Warner and AOL’s $145bn merger is now expected to go ahead. European competition officials were ready to approve it before EMI entered the equation.
EMI and Time Warner said they would continue to work with regulators to seek other ways of comining.
Eric Nicoli, EMI Group chairman, said: ‘We continue to believe that a joint venture with Warner Music Group can create substantial value and provides the opportunity to build a unique, Anglo-American owned music company.’
This article first appeared on vnunet.com.