Trade Review: Week Five (2/2)

Universal Music Completes $1.9 Billion EMI Recorded Music Acquisition

http://www.hollywoodreporter.com/news/universal-music-completes-19-billion-374965

One of the largest mergers in the music industry, EMI and Universal (now Universal EMI) were approved by the United States government for Universal's 1.9 billion dollar acquisition of EMI. With speculations that the merger would discourage competition amongst music companies, Universal EMI now holds the largest market share in the music industry of just under 40%. From buying out one of its major competitors, Universal eliminates one of its three competitors of majority market share in the music industry. Now down to three music giants, the music industry will take an interesting turn within the next year as Universal EMI works together under one company.

A pressing topic over the merger is will Universal EMI have a cohesive working environment that will work together to cross promote each other's clients to drive overall revenue? Will Universal EMI exploit their majority ownership of the music industry and change the way the industry runs, sets prices, releases content, contracts, live performances etc. The power Universal EMI will have to single handedly shift the industry and make future acquisitions come effortlessly and difficulties that were once road bumps now just pebbles under their tires as they drive full speed ahead in leading the music industry on its future path.  Although, I am more nervous than excited to see what will result with the merger and how this new mega conglomerate has the potential to control the music industry to a similar extend that the Clear Channel and Live Nation merger now controls ticketing and live concerts. Universal EMI claims they will "[remain] true to its vision" leaves me on edge as to whether or not this "vision" includes improving the music industry as a whole, the consumer market and consumer satisfaction, or is this vision only applicable to the Universal EMI brand (Szalai)

1. Szalai, Georg. "Universal Music Completes $1.9 Billion EMI Recorded Music Acquisition." The Hollywood Reporter. N.p., 28 Sept. 2012. Web. 30 Sept. 2012. <http://www.hollywoodreporter.com/news/universal-music-completes-19-billion-374965>.