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The rumors that Capitol and Virgin were about to merge into a single unit were true…Here it is folks…………….

EMI is merging its North American pop, rock and urban operations. The company today announced plans to combine its Capitol and Virgin labels into a single unit called The Capitol Music Group. Jason Flom who joined EMI as chairman/CEO of Virgin in November 2005–is named chairman/CEO of the new organization. He reports directly to EMI Group CEO Eric Nicoli and will now oversee the combined Capitol and Virgin rosters in the US.

Capitol president/CEO Andrew Slater is stepping down from his post of six years.

The shakeup is part of EMI Group’s recently announced effort to deliver $217 million in annual savings across its business.

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