Association Of Independent Music Looks To Stop Sale Of EMI
January 19, 2012 at 8:04 AM (PT)
A report from NME.COM says the ASSOCIATION OF INDEPENDENT MUSIC has begun a campaign to stop the break-up and sale of EMI.
VIVENDI's UNIVERSAL MUSIC GROUP (UMG) signed with CITIGROUP INC. a definitive agreement to purchase EMI's recorded music division for a total consideration of £1.2 billion (approximately $1.9 billion) representing seven times EBITDA prior to synergies in NOVEMBER (NET NEWS 11/11/11).
NME reports AIM, "which said at the time that the sale was announced that it represented 'bad news for almost everyone' in the music industry, has issued its members with a letter to send off to their local MPs and hopes to encourage the Secretary of State for Business, Innovation and Skills to intervene. According to MUSIC WEEK, an extract from the letter reads, 'The increasing concentration of the music market in the hands of a decreasing number of gigantic multinationals has undoubtedly damaged competition. The proposed sale of EMI threatens further damage so great that it must be reviewed and resisted by the U.K. Coalition Government with the full support of the Opposition'."
The letter continued, "The move will will undoubtedly concentrate the global music market still further into the hands of two dominant major companies -- UNIVERSAL and SONY. That itself is enough to demand that the U.K. Government looks closely at and opposes the proposed sale of the only U.K. major music company to the remaining gigantic multinational."