Trouble Brewing For The UMG/EMI Deal?
July 2, 2012 at 3:56 AM (PT)
Last week (NET NEWS 6/29), the FEDERAL TRADE COMMISSION OK'd a SONY-led group's purchase of EMI MUSIC PUBLISHING, without having to make any divestitures.
Now comes the harder deal, as THE FINANCIAL TIMES reports, "UNIVERSAL MUSIC has moved to reassure staff that VIVENDI still supports it and its £1.2 billion bid for EMI's record labels after last week’s sudden exit of the French parent company’s CEO."
CEO JEAN-BERNARD LÉVY resigned after a board meeting THURSDAY afternoon, following a "divergence of views on the strategic development of the group," according to a company release (NET NEWS 6/29).
FT notes, "The resignation of JEAN-BERNARD LÉVY after 10 years came amid talk of a fall-out with JEAN-RENÉ FOURTOU, VIVENDI's chairman, over whether to break up a group that is struggling to revive its shares. Much of the debate within VIVENDI has centred on how to fix SFR, the French telecommunications company facing intensified competition in its home market, but analysts also questioned whether Mr LÉVY’s backing for UNIVERSAL’s pursuit of EMI’s recorded music division had added to the boardroom tension."