Exhibit 99.1
October 5, 2000
EMI AND TIME WARNER WITHDRAW CURRENT EC CLEARANCE
APPLICATION
EMI Group and Time Warner have today informed the European Commission's Merger
Task Force that they are withdrawing their current application for approval of
the proposed combination of EMI Music with Warner Music Group.
EMI and Time Warner have been in negotiations with the Commission, discussing
a range of possible concessions aimed at responding to the Commission's
concerns while preserving the economic merits of their proposed joint venture.
EMI and Time Warner have, as of today, terminated their current agreement.
However, they have agreed to continue discussions with each other, the
Commission and other regulators in order to attempt to achieve a combination
which is acceptable to all parties. Any resulting new agreement will be
subject to EMI Group shareholder approval.
Eric Nicoli, Chairman of the EMI Group said: "The withdrawal of our
application allows additional time to reassess regulators' concerns and to
pursue solutions simultaneously in Europe and the US. We have been, and will
continue to be, flexible in responding to the European Commission's concerns.
However any concessions that are ultimately made must be consistent with our
shareholder value objectives."
"We continue to believe that a joint venture with Warner Music Group can
create substantial value for our shareholders and benefit our artists,
consumers and employees by bringing together two companies with complementary
strengths. It provides the opportunity to generate considerable cost savings
and to build a unique, Anglo-American owned music company."
"In the meantime, our business is in good shape and we will continue to drive
it forward. Notwithstanding the uncertainty caused by the regulatory process,
we have maintained momentum in both our recorded music and music publishing
businesses and we have our strongest release schedule for many years."
Time Warner President, Richard Parsons, said: "Our proposed joint venture with
EMI would bring together two of the most creative, and complementary,
organizations in the world-wide music industry. Because of our confidence in
this
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combination's potential to deliver extraordinary dividends to our artists,
employees, shareholders and music lovers around the world, we will continue to
explore ways to structure a combination that will make sense for the two
companies and be acceptable to the Commission."
A further announcement will be made in due course.
Contact Information
Dawn Bridges, EMI Group 212/492-1275
Ed Adler, Time Warner 212-484-6630
