The 2004 merger between Sony Music and BMG is in danger of being undone, following a new ruling from the European court.
The Court of First Instance in Luxembourg has overturned the prior approval of the merger, which means the two companies will have to go through the process all over again.This has now thrown the proposed merger of giants Warner Music and EMI into doubt.
Warner Music Group issued a statement this morning saying "We are in the process of reviewing today's decision by the European Court of First Instance regarding Sony BMG to determine what impact it might have on a potential combination of Warner Music Group and EMI Group plc".
A statement from EMI reads "EMI Group notes the decision of the European Court of First Instance to annul the European Commission's decision authorising the Sony BMG joint venture".
"This judgment is about how the Commission undertook its assessment of the Sony BMG case in 2004 and the particular evidence presented in that case. It will require detailed study before any wider conclusions can be reached".
In May, while Warner rejected an offer for the merger from EMI, talks have continued.
After today's ruling, EMI shares plunged 10p on the announcement and the Warner share price dropped by 25%.
