Sony BMG merger to be reversed?

Following their highly publicised merger in 2004, which resulted in the Sony and BMG record labels combining to become the world’s second largest music company, a recent decision by a European court to annul the merger has cast a shadow over the future of the Sony BMG empire.

The merger, which was approved by the European Union, was overturned by the European Court of First Instance last week, and comes as fellow major record labels EMI and Warner Music moved forward with their plans to also join forces. After the ruling share prices for Warner and EMI plummeted, dropping 15.2% and 9.2% respectively.

Sony BMG have 7 days to appeal the ruling. News sources report that following the landmark decision, talks between EMI and Warner to pursue their planned merger have ground to a halt.

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