LONDON – Warner Music, has rejected a US$4.2 billion (£2.2bn; €3.3bn) bid by rival EMI.
A merger between the two has long been on the cards, in an attempt to compete more effectively with larger rivals Universal Music and Sony BMG.
Warner Music said it had carefully examined the offer, but decided it did not benefit shareholders.
“This is disappointing, as we believe the logic for combining the two businesses is compelling,” said Lorna Tilbian, an analyst with Numis.
If the two had merged, the combined company would have held about 25% of the recorded music market, based on figures from the International Federation of the Phonographic Industry.
Artists recording on the Warner label include Madonna and James Blunt, while EMI’s list includes Coldplay, Robbie Williams and Roxette.
EMI unsuccessfully bid to buy Warner from its previous parent, Time Warner, in late 2003 before losing out to an investment group led by it’s current CEO. Read the full story...