Warner set to takeover EMI?
Several newswires are reporting that Edgar Bronfman Jr has had his $750 million dollar bid accepted by Citigroup, the bankers who own EMI.
EMI are still in heavy debt to their creditors, meaning they may be forced to sell.
Much of the companies valuation is down to their lucrative publishing. Citigroup have alleged to cancel the debt if they can take control of EMI Publishing.
Sony BMG are alleged to be bidding for EMI’s extensive publishing catlog that ranges from Motown to The Beatles.
The repercussions for the music industry are simple :-
The Big 4 would become the Big 3 (Universal/Warner/Sony BMG). This could be controversial due to laws on monopoly.