Talks of a merger between EMI and Warner Music Group could be heating up again. The merger had previously been squashed by European regulators, but now discussions could "resume in earnest within months, with advisers on both sides being briefed to prepare for merger talks," according to the U.K.'s Sunday Times. Although no approach has been made by either company or its advisers, both sides are reportedly working through the potential structure of any deal. Management could be a key issue, as EMI Chairman Eric Nicoli and Warner boss Edgar Bronfman Jr. would both likely seek key leadership roles. “This deal’s going to happen. The only question is timing,” a source told the Sunday Times. Recent rises in EMI and Warner stock prices have prompted rumors that the companies are already in merger talks, but sources have denied that.

Meanwhile, is Sony close to controlling its joint venture with BMG? It has been previously reported that Bertelsmann wants to sell its stake in the venture, but now, with word that a major investor in Bertelsmann plans to force an initial public offering, the Mohn family, Bertelsmann's controlling shareholder, is likely to step up efforts to fend off the IPO by raising money. They could do this either by selling their stake in the joint venture or finding creative ways to use its stake in Sony BMG to raise funds in exchange for giving Sony more control, sources told the New York Post.

Among the proposals Bertelsmann has been considering are taking out a loan backed by its share of the venture, or issuing a tracking stock which would include half of Sony BMG. Since these proposals would require Sony's approval, Bertelsmann would likely have to hand over full control to Sony in exchange, says the Post. Bertelsmann may also have the option of selling its stake back to Sony.