Report: UMG To Propose Revival 'Manifesto'
July 11, 2012 at 3:54 AM (PT)
THE FINANCIAL TIMES reports, "UNIVERSAL MUSIC will propose to regulators in the coming weeks a 'manifesto' for restoring music industry growth as it seeks to save its £1.2bn bid for EMI's recorded music business, its chairman and chief executive has said. LUCIAN GRAINGE told THE FINANCIAL TIMES that the VIVENDI-owned market leader would sell assets to address fears that its market share could exceed 50 per cent in some countries and would offer commitments about its future dealings with digital start-ups, independent labels and larger rivals."
The move reflects the ideas of VIVENDI Chairman JEAN-RENÉ FOURTOU, who has taken the reins of UMG's bid for EMI MUSIC (NET NEWS 7/6). FOURTOU said last week he would be "willing to make concessions to quell fears that the deal could harm smaller labels and crush digital music innovation."
GRAINGE told FT, "I'm extremely open-minded about working with the [EUROPEAN] COMMISSION in the context of behavioural remedies as well as divestitures."
FT also notes, "GRAINGE said EMI had suffered an 'enormous' cut to A&R spending under TERRA FIRMA, GUY HANDS' private equity firm, which lost control of EMI to CITIGROUP last year. UNIVERSAL would increase investment -- in different artists and genres in different languages."