Virgin Records and Capitol Records merged in an effort to save millions of dollars each year. I believe this was a suitable merger as it ended up making the process more efficient for both companies and allowed them to use each others resources. I believe Capitol Music Group has put forth a lot of music talent in its time.
Virgin records should have merged with Capital records to form a very powerful company. Music and media companies have been going through a very difficult and tough time of transition. A strong well capitalized company would of made the transition even better and come through more powerful than ever. That company would of been great.
Both sides were able to see that a merger between the two record labels made sense and decided to do it after much negotiation, I feel that it was a good move overall the newly formed entity now has more resources to be able to sign some of the largest bands and singers around.
It really destroys the competition when these big giant companies do it. I have no problem with little companies, when they do it. They are just trying to survive. These big companies just do it so they can monopolize the market. Keep the little guys from getting any bigger. They should make a law because it throws the market into chaos. It leaves no room for new ideas.
No, Virgin Records should not have merged with Capitol Records to form Capitol Music Group, because there are more recording artists if there are multiple record labels. What one record label might want to sign another label might pass up. Multiple companies give more opportunities to a variety of artists, and more choices for consumers.