July 13th, 2006

Sony BMG to Be Split?

By Michael Santo
Contributing Writer, RealTechNews

The name Sony seems synonymous with bad news of late. They had the recent news over their problematic ad in Holland. There was last year’s debacle over DRM. And of course, there’s all the fallout over PS3 pricing. Now what? It appears the EU may be rethinking their approval of the merger of Sony and Bertelsmann.

The European Commission erred when it approved a merger between the music units of two media giants, Sony and Bertelsmann, the European Union’s second-highest court ruled Thursday. If the decision stands, it means that Sony Music and BMG will have to resubmit the merger plan to the commission, which would then revisit it, taking into account current market conditions. Source: IHT

We Say: According to the article, this may also cast doubt on the merger between EMI Group and Warner Music, who are fighting over which company gets to buy the other. Meanwhile, in Sony-land, they only have 7 days to file new paperwork, so they’d best get moving!

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