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BMG - Warner deal is all about control
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curlio
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The deal to merge BMG (Bertelsmann Music Group) and Warner could create the second largest music company in the world (behind Sony I presume). Unfortunately, or perhaps fortunately depending on your view, the deal is stalling. So is the problem money? Nope, the problem is who gets control. Bertelsmann AG (news - web sites), which is in negotiations with AOL Time Warner to merge their respective music units, is concerned that it might emerge as a junior partner. But what both sides really want is control of the merged unit, according to sources at the German company.
The real issue here is control. Financial savings are secondary, the sources say. 
I can imagine that both sides want to know that their interests are served. I don't think that another large corporation is what the music industry needs at the moment though.
Read the full article here.
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