Lynne d Johnson



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03.04.07 01:23 AM

Music Industy In Dire Straits

As per James at Masterworks, EMI's rejection of Warner's bid to buy it out because the offer was too low should definitely convince you that the music industry (outside of publishing, merchandising, licensing, & touring) is on a steady decline.

via Europe

EMI Rejects 2.1 Billion-Pound Proposal From Warner (Update3)

By Zimri Smith and Don Jeffrey

March 2 (Bloomberg) -- EMI Group Plc, the world's third- largest music company, rejected a 2.1 billion-pound ($4.1 billion) takeover bid from Warner Music Group Corp. as too low.

Warner offered 260 pence a share, London-based EMI said in a statement today. The bid was 17 percent higher than EMI's closing price Feb. 19, the day before it said it received an approach from New York-based Warner Music. EMI today called the proposal "inadequate.''

The rejection extends the maneuvering between two companies struggling with declining music sales and piracy. EMI and Warner abandoned $4.6 billion offers for each other in July on concern a combination would be blocked by European Union regulators.

"EMI's holding out for a better premium,'' said Bishop Cheen, a bond analyst with Wachovia Securities in Charlotte, North Carolina. "These two companies, because of their size, do belong together. But it's going to take a long time.'' (More)

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