Music Industry 2.0
EMI is preparing a renewed bid for Warner Music after its US-based rival rejected a $4.23bn (£2.35bn) cash-and-shares offer. Warner said yesterday that EMI’s bid – its third attempt in six years to woo the US music group – was not in the best interests of its shareholders, but sources close to EMI described it as “a first offer” that they had expected to be dismissed.
Warner Music Group Corp., controlled by a group led by Edgar Bronfman Jr., rejected a $4.23 billion offer from EMI Group Plc, the third time the British record company has been thwarted. Warner Music shares rose as much as 7 percent.
EMI, home to artists Coldplay and Joss Stone, offered $28.50 in cash and stock for New York-based Warner, whose musicians include Madonna and James Blunt. The bid, 4.4 percent more than the closing price yesterday, isn’t ``in the best interests of our shareholders,’’ Warner said in a statement today.
Veteran bands claim label giant isn’t giving them their fair share of digital-download revenue from stores such as iTunes.
The digital-download business is booming, but the Allman Brothers Band and Cheap Trick claim they aren’t getting their fair share of the pie.
The two veteran rock bands sued their label Sony Music today, charging the music giant with not paying them the required percentage of net licensing revenue it receives from Apple’s iTunes and other digital-download stores.
SENIOR executives at EMI, the British record label, and its American rival Warner Music Group are preparing for preliminary talks that could lead to the creation of the world’s third-largest music company.
Sources close to both groups said the firms’ on-off discussions would resume in earnest within months, with advisers on both sides being briefed to prepare for merger talks.
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...Aside from Warner Music, industry observers believe that Apple, the computer giant that has scored a huge success with the iPod and iTunes, could be interested in a bid for EMI.
Recent rises in the EMI and Warner share prices have prompted speculation that the companies are already in merger talks, but sources close to both denied that this weekend.
THE British impresario behind Crazy Frog and Right Said Fred has signed on for the music industry’s greatest challenge: relaunching the King of Pop.
Michael Jackson has appointed Guy Holmes, the London-based music entrepreneur, as his manager and the boss of a Bahrain-based record company that will release the star’s comeback album.
New independent record label MVine provides the first direct route from social networking services to a record deal, establishing mvine.com as the only community with the power to sign artists.
MVine is pioneering the simple but innovative idea of signing artists on peer recommendation. Members of MVine’s on-line community of musicians & fans spot new acts with potential from amongst the several hundred unsigned acts showcasing on MVine’s virtual venue. Word of mouth spreads a buzz about a band – MVine takes it further and signs artists based on audience feedback. That’s true democracy for you. (more…)
arvato mobile has acquired one of Europe’s largest independent record labels SPV as a partner and will be realizing worldwide marketing and content production for the Hanover based company. SPV’s venture with Europe’s number one provider of mobile entertainment marks the company’s entry into the mobile marketing arena. (more…)
The final judgement in the Apple Computer versus Apple Corps case is expected before the end of the month.
The Beatles holding company, Apple Corps, is hoping the case will be declared in its favour. It wants Apple Computer to cease using the Apple logo in connection with its iPod and iTunes products.
If Apple Computer fails in its defence that its service is simply data transmission, rather than the release of music, then Apple Corps will pursue the computer company for damages.
With the arguments for both sides now closed, Judge Edward Mann must now decide whether to grant an injunction barring Apple Computer from using the logo within iTunes.
Justice Mann says he will probably issue his ruling toward the end of the month, but not before Easter weekend.
Warner Music is combining several of its labels into a new division, and installing the hit-maker Todd Moscowitz to oversee the new group.
The new division, to be called the Independent Label Group, will include Asylum Records, Warner’s new rock label East West Records and Cordless Recordings, the company’s digital-only label.
EMI has been the subject of numerous takeover rumours in recent sessions, mainly on the back of its poor performance over the past few years against a rising market. Even having the likes of Robbie Williams, Coldplay and Gorillaz on its roster has done little to cheer shareholders.
Takeover rumours did the rounds again yesterday, with more talk of a link-up with Warner Music, the recording division of the media giant Time Warner. However, dealers reported quality buyers piling into the stock as traders also speculated that Apple, the computing group that has revolutionised the music industry, may be considering an offer for EMI. Apple’s iTunes is by a long way the market leader in music downloading but does not own any content. One trader said: “Media assets are out of favour with investors and have been for a long while, but there are definite signs the cycle may be turning.”