He was worried that he could somehow be terminated from his position as CEO. He also feared that EMI’s Alain Levy, as number 2 in the company, could unseat him……

According to Fox News’ Roger Friedman it turns out that Edgar Bronfman Jr. (pictured) had the opportunity in February 2004 to merge the two companies, remain CEO and regroup into a powerhouse. He could have combined the Beatles with Atlantic Records’ catalog, streamlined into a mega giant and been awarded kudos from all corners.

What Went Wrong?

Papers filed as exhibits in a lawsuit brought against Bronfman outlined the whole mess as it went down. The papers come from a suit brought by former Simon & Schuster publisher Richard Snyder, whom Bronfman met over Christmas 2001 while on a family vacation in Anguilla. In 2002, Bronfman invited Snyder to help create deals for investment after the former had botched involvements with Vivendi Universal and elsewhere.

A Riff Between Bronfman and Snyder. The Drama Begins:

Snyder says that he was the architect of the Warner Music deal, and that once it was completed, Bronfman unceremoniously dumped him and refused to give him his cut. Snyder is suing for $100 million.

The proposed evidence:

The most glaring of the documents attached to the Snyder lawsuit: a letter from EMI chairman Eric Nicoli dated Feb. 9, 2004, to Bronfman and Scott Sperling of Thomas H. Lee Partners, the firm that financed Bronfman’s WMG deal and now has a controlling stake in the company. It’s titled “Proposal for Acquisition of Warner Recorded Music and Part of Warner-Chappell Music Publishing.”

The Kings Are Appointed:

In the letter, Nicoli outlines an offer to merge with Bronfman’s new WMG for $1.6 billion in cash, and reiterates a plan by which Bronfman would become CEO of the “enlarged EMI Group.” Nicoli recommends that Alain Levy, then head of EMI Music, become CEO of the Music Group and Martin Bandier become CEO of EMI Music Publishing. It’s that simple. All Nicoli asks is that his EMI executives remain in place through the new company. He reminds Bronfman that the offer, which would have solved numerous problems for both companies, expires two days hence.

Bronfman Says NO to DEAL.

Bronfman didn’t want the deal. On Feb. 11, Nicoli e-mailed Bronfman: “We understand you do not wish to pursue our offer.” He copied Sperling. Bronfman circulated the e-mail to Snyder and to his brother-in-law Alejandro Zubillaga.

He was worried that he could somehow be terminated from his position as CEO. He also feared that EMI’s Alain Levy, as number 2 in the company, could unseat him.