Commission expected to approve AOL & Time Warner

According to reports, the European Commission is expected to approve the $135 billion takeover of Time Warner by America Online. However, it is also expected to block the proposed joint venture deal between Warner Music and EMI Group unless the companies can allay concerns.29 Sep 2000

It is thought that the Commission will reject the music company merger to appease its competition concerns over the AOL/Time Warner merger. However, EMI and Warner Music are believed to have offered to sell EMI-owned Virgin Records and a significant part of Warner’s music publishing business in the hope that creating a new competitor by divestment will persuade the Commission to approve the merger.

The Commission must make its final ruling on the Warner/EMI deal by 18th October and on the AOL/Time Warner deal by 24th October.