Mergers and Acquisitions Between Universal and Emi

Mergers and Acquisitions between Universal and EMI

The recent change in Universal Music Group was buying out the EMI music group. The reason for the merger was EMI was not paying their bills. “US bank Citigroup took ownership of EMI in February after previous owner Terra Firma failed to meet loan payments” (BBC news, 2012). With the merger between the music groups will change the playing field for all artists. The artist could be successful of selling more digital media with the merger between Universal and EMI. Artist could view this merger has an opportunity. “Universal and EMI hold a combined market share just below 40 percent of digital music distributed by iTunes and Spotify in Europe, making it the biggest single source” (Choo, 2012). Universal could sell most of EMI’s catalogs, music, and other assets.

The theory of the change was to save the company from the environment pressures for change. According to Palmer, Dunford, & Akin (2009) environmental pressures are one focus for explaining change. These often occur where an organization's resource base decreases as a result of reduced demand for products and sales, decrease in market share, and bad investment decisions.

The leaders of these Mergers need to be

1. An effective leader understands the big picture of a project -

2. An effective leader knows what it takes to get the job done.

3. An effective leader must have interpersonal skills.

4. An effective leader is a great communicator

5. An effective leader must have great leadership skills

The reason I pick these qualities’ because an effective leader must understands the big picture of what he/she is doing with a company