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.
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.
