WARNER PLAYING
“LET’S MAKE A DEAL”

In a carefully worded statement, the EMI acknowledged they were still interested in a merger with the company they wanted to hook up with three years ago: “In view of speculation in the weekend press, EMI Group plc announces that it has now entered non-exclusive discussions with AOL Time Warner Inc. with regard to a possible transaction involving the recorded music division of the Warner Music Group. Discussions are at a very preliminary stage and there is no assurance that they will result in an agreement acceptable to both parties. Any potential transaction would be subject to shareholder and regulatory approval. Close cover before striking. Do not use if temperatures exceed 100 Farenheit. If product is exposed to sunlight, do not inhale fumes.”

Various press reports pegged the offer as $1 billion in cash, $500 million in EMI stock and a 25% stake in the combined companies.

Talks between AOLTW and Bertelsmann reportedly continue, though the exclusivity agreement expired last week, allowing those crafty Brits to make their move.