WMG chairman opposes Universal's EMI acquisition
Edgar Bronfman has expressed his opposition to the acquisition of the recorded music division of EMI by Universal.
Merger and acquisition consultants could be needed during the proposed purchase of EMI's recorded music division by Universal, as former chairman of Warner Music Group (WMG) Edgar Bronfman has vowed to fight the initiative "tooth and nail".
He told Peter Kafka of AllThingsD during the D: Dive Into Media conference on Tuesday January 31st - his last day as head of the company - that if the buyout goes ahead, a "super-major" will be created that will be too powerful.
Universal will have a market share greater than 40 per cent, which will affect cultural diversity and artists as well as music labels, Mr Bronfman remarked.
"It strikes me as hubris that Universal will buy EMI," he declared.
Mr Bronfman is responsible for guiding WMG from the more traditional industry of recording and publishing music into a broad-based firm that deals with artist services as well.
With a private investment company, he acquired WMG from Time Warner at a cost of $2.6 billion (£1.65 billion) and eventually sold it to Access Industries for $3.3 billion.
Posted by Edel Quinn
Source: AllThingsD press release, January 31st