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Mon, Oct 13, 2008 - 03:13 PM EDT  —  AAPL: 105.18 (+8.38, +8.66%)  |  NASDAQ: 1776.29 (+126.78, +7.69%)

EMI rejects Warner Music buyout bid
Sunday, March 04, 2007 - 03:03 PM EDT

"British music giant EMI Group plc said Friday that it has rejected a potential buyout bid from rival Warner Music Group, saying the proposal would be 'inadequate' and would lead to 'prolonged regulatory uncertainty,'" David B. Wilkerson reports for MarketWatch.

Wilkerson reports, "EMI said it remains committed to making the most of itself as an independent company, including the implementation of a restructuring it announced in January. EMI and Warner had discussed a merger in 2006, though the companies argued over which company would acquire the other."

Full article here.

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Mar 04, 07 - 04:12 pm Comment from: not done correctly

So - for now - DRM-free music is still at play? Or has EMI really backed-off from this?

Mar 04, 07 - 05:37 pm Comment from: Fanatic Realist

Which leaves the way clear for Apple to buy either WMG or EMI.

Mar 04, 07 - 05:48 pm Comment from: WiseGuy

I rather EMI buy out Warner and oust that aweful DRM loving Barffman.

Mar 04, 07 - 05:57 pm Comment from: LinuxGuy and Mac Prodigal Son

It would be insane for Apple to buy out EMI. They would destroy their relationships with all of the other content owners.

Mar 04, 07 - 06:34 pm Comment from: Fanatic Realist

LinuxGuy…

As much as we would like to think otherwise, there is no "relationship".

There is simply a mutual desire to make money; SonyBMG and UMG have continually indicated their antipathy towards online sales generally and Apple, iTunes, iTS and iPod customers specifically, but they are conflicted as iTS is the one little ray of hope in their cocaine-afflicted world.

If Apple were to purchase either the whole or a significant part of EMI and/or WMG, the effect would be to put the remaining players on warning: Stop rattling your sabres every time the contracts come up for renewal!

Purchasing 35% of EMI and WMG would cost a mere fraction of what Apple has in the bank and would - to all intents and purposes - give Steve Jobs and Eddy Cue the right to obstruct the day-to-day running of both of these companies if Apple detected that their interests were being compromised by the frankly Luddite behaviour of the incumbent executive boards.

Mar 04, 07 - 06:42 pm Comment from: Fanatic Realist

And – just so that we're not in any doubt about what I mean by obstructing the day-to-day running - executive remuneration would be my first stop.

Mar 05, 07 - 10:55 am Comment from: prut prut

Well Sony -- i guess you'll just have to find someone else to anchor you dying company too..

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