EMI confirms Warner Music bid
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EMI artists include the British singer Robbie Williams
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LONDON, England -- The music giant EMI has confirmed it has entered the race to buy Time Warner's recorded music division, saying talks are at an "advanced stage."
If the deal goes through, it will create a musical powerhouse combining EMI artists such as Robbie Williams with Warner's roster that includes Madonna. Time Warner is the parent company of CNN.
The company gave details of the bid as it reported higher-than-expected financial results due mainly to cost-cutting. Pre-tax profits for the first half fell 6.6 percent to £39.4 million ($66.6 million) compared with a £42.2 million for the same period last year.
EMI's sales were broadly flat at £960 million, outperforming the global recorded music industry which has seen a 10 percent fall in sales over the last six months.
The industry has been hit hard by piracy, digital downloading and tumbling sales which have forced the music majors to consider joining forces. The German music company BMG agreed earlier this month to merge with Sony's music business.
However, EMI may face competition for Warner Music. A consortium led by former Seagram Chief Executive Edgar Bronfman Jr. is also expected to make a bid.
EMI said it's not aware of a rival bid "We would not have made a firm proposal if we didn't think we had good prospects" said Chairman Eric Nicoli.
