EMI and Warner: Trim Costs + Increase Efficiency = Lay Offs
Posted June 29, 2006 — in Music News
At this point, most industry experts agree to the fact that EMI and Warner will pair up.
EMI recently raised the bid for Warner and rejected the counteroffer. EMI said it had increased its bid for Warner to $4.6 billion, from $4.2 billion in May, and also said Warner had turned the tables and bid about $4.6 billion for EMI on Tuesday. Neither company is welcoming the other’s bid. EMI said today that Warner’s proposal is “wholly unacceptable.” If these 2 companies combined “it” would own 25% of the global music business.
Analysts estimate there are several hundred million dollars in costs that could saved if the groups combined. If this happens, expect major lay-offs. Remember, that “mergers” don’t exist. “Mergers” are a myth. A merger is a dressed up word for takeover. Read the full article in the NY Times.
Mergers do exist. See Sony BMG.
Any union of EMI and WMG is not likely to be a merger. One will take over the other.
And yes, there will be serious layoffs. That’s where much of the cost efficiencies are going to come from. I’ve heard some WMG employees are already finding work elsewhere — at EMI, in fact.
Comment by Glenn — July 2, 2006 @ 8:35 pm