There Are Only Three Major Recording Labels in the World-Sony

question 220

Essay

There are only three major recording labels in the world-Sony Music Entertainment, Time Warner's Warner Music Group, and GE's Universal Music Group. They are responsible for the vast majority of music recordings that are made. Harry says that these three music companies operate as an oligopoly. Maryanne says that they operate as monopolistic competition. Explain how each came to his or her conclusion. Who is correct?

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Definitions:

White Knight

A friendly investor or company that acquires a corporation at fair consideration, often to prevent a hostile takeover.

Unfriendly Suitor

A company or individual that makes a takeover attempt on another company without the consent or cooperation of the target company’s management.

Golden Parachute

A contract provision that gives a company's executives significant benefits if they are terminated as a result of a merger or takeover.

Golden Parachutes

Large financial compensation packages agreed upon by a company and its top executives, which are triggered if the executive is terminated as a result of a merger or takeover.