Toshiba Corp. is considering merging its music software company with that of U.S. media and entertainment giant Time Warner Inc. in a deal that would create Japan's biggest music software firm, a Toshiba official said Friday.
The move to seek a marriage between Toshiba-EMI Ltd. and Warner Music Japan stems from the planned merger by the end of this year of their parent firms, EMI Group of Britain and Time Warner.
Toshiba, EMI and Time Warner will start negotiations on the possible merger around the end of March, the official said.
The merger between Toshiba-EMI and Warner Music Japan would unseat Sony Music Entertainment (Japan) Inc. from its position as the top music software company in Japan.
The EMI Group owns 55% of Toshiba-EMI, compared with the 45% stake owned by Toshiba. The company has contracts with such major Japanese singers as Hikaru Utada and Yumi Matsutoya.
Warner Music Japan is wholly owned by Warner group companies. Musicians and singers signed to it include Ryuichi Sakamoto and Tatsuro Yamashita.
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