There Are More Hoops To Jump Through For UMG To Satisfy EU Regulators In EMI Deal
Sources: UMG Willing To Spin Off Virgin, Plus Jazz And Classical Labels
July 18, 2012 at 10:02 AM (PT)
UNIVERSAL MUSIC GROUP continues to look for the right mix of concessions to appease European antitrust regulators for its proposed $1.9 billion acquisition of EMI MUSIC. THE WALL STREET JOURNAL reports UMG "will likely need to offer significant divestitures to overcome the Commission's objections, which were particularly strenuous, according to people who have reviewed them."
BARCLAYS PLC analyst JULIEN ROCH released a report released on TUESDAY suggesting that UMG would need to sell upwards of 50% of EMI MUSIC -- at a steep discount. The bank estimated that value to be approximately $246 million.
"We are continuing to work constructively with the European Commission," UNIVERSAL said in a statement, "and we remain confident of clearance."
Sources told REUTERS that UMG would be willing to sell three labels to secure the EMI acquisition: EMI's classical and jazz labels and its VIRGIN RECORDS.
Just YESTERDAY (NET NEWS 7/17), the indie label trade group IMPALA Co-Pres. PATRICK ZELNIK wrote an editorial in the FINANCIAL TIMES, asserting that "A UNIVERSAL/EMI merger could rescue the music business."