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Merlin continues to oppose Universal EMI buyout

Rhian Jones
Merlin continues to oppose Universal EMI buyout

Merlin's board has voted unanimously to continue to oppose the Universal EMI buyout.

Merlin – the global digital rights agency representing independent rights owners - opposed Universal's proposed acquisition from the outset, arguing that it would severely threaten the development of the digital music business.

In a statement, Charles Caldas, CEO of Merlin said that Universal's already market leading position would mean that the proposed acquisition could only serve to damage the digital ecosystem, not only for independent labels, but also for potential investors and consumers.

"In a market already hampered by Universal's exploitation of its market leading position, this proposed acquisition could only serve to damage the digital ecosystem, not only for our members, but also for potential investors and consumers," he said.

"The Merlin Board's latest decision underlines that we remain committed to our belief that the proposed deal would put even more power in the hands of the company already most likely to try and shape musicservices to its own advantage and would severely damage the digital music market just as it approaches the crucial tipping pointwhere digital takes over from physical.

"We trust and believe that the European Union and U.S. regulators reviewing this transaction understand the devastating impact this transaction would have on the digital music market and will act accordingly."

Merlin's reaffirmed opposition to the UMG/EMI Music merger comes after confusion over IMPALA's position on the matter yesterday as the indie group's co-president Patrick Zelnik came out in favour of the deal (subject to conditions) with the majority of IMPALA board members backing him.

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Tags: umg, merlin, emi, UMG/EMI Merger, impala

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