Universal EMI Merger Approved In Canada
The Competition Bureau approved the Universal and EMI merger proposal last Friday, with no objections.
The merger proposal has cleared regulators in Japan and New Zealand but is still under review in Europe and the United States, where decisions are expected in September.
Mp3tunes.com Files For Bankruptsy
Mp3tunes.com has filed for bankruptcy in the Southern District Of California.
The San Diego based company was founded by Michael Robertson in 2005 and offered cloud and music streaming services to its American members.
Mr. Robertson, who also co-founded mp3.com in 1997, blames litigation for the failure of the company in a May 1st, 2012 statement.
EMI has stated they would continue their lawsuit against the company, according to C-Net News.
EMI Music Group Split For Sale
It appears that Citigroup have decided to sell individual portions of EMI Music Group according to two press releases issued yesterday.
The labels within the group will be sold to Vivendi and Universal Music Group for £1.2 Billion whilst the publishing assets of the group will be sold to an investor group that includes Sony Corporation of America, David Geffen and the estate of Micheal Jackson for $2.2 Billion (source : Citigroup press releases 111111a / 111111b).
These sales are of course subject to regulation and independent label association IMPALA expects that the sale of EMI Recordings to Universal Music Group will be “blocked outright” according to their latest press release.
Warner Out For EMI Purchase
Billboard has reported that Warner Music Group has pulled out of the negotiations for EMI.
Citigroup have allegedly renewed negotiations with Universal and Sony whilst Independent label association IMPALA filled protests about the sale with the European Commission over concerns in regards to a possible duopoly in Europe.
According to their November 8th, 2011 press release, IMPALA had preferred a sale to Warner Music Group, which they believed “could help balance the duopoly but would still need substantial remedies as it would increase the competitive gap for the independents“.
EMI Music Group Update
The Wall Street Journal reports that Terra Firma Capital Partners, the group that owns EMI, has received their stockholder’s approval to secure a $156 Million deal that will keep Citigroup at bay for the next two years.
By next March the label will still need a restructuring plan to handle it’s significant debt and people are in the industry are still speculating on whether Sony or Warner will buy up some of the company’s assets.