Report: UMG To Spin Off Labels To Indies To Get Approval On EMI Purchase
July 23, 2012 at 3:40 AM (PT)
UNIVERSAL MUSIC GROUP reportedly plans to sell three music labels currently owned by EMI MUSIC to independent labels rather than other major labels, as part of getting regulatory approval for its purchase of EMI MUSIC.
REUTERS reports "UNIVERSAL wants to shut out its closest competitors, SONY MUSIC and WARNER MUSIC, from the bidding process for the assets and is instead courting independent labels, music publishers, private equity groups and wealthy individuals. The music group was trying over the weekend to agree on a package of concessions with EUROPEAN UNION competition regulators, which wants to circulate the proposals this week."
UMG Gets More Time To Close The Deal
Meanwhile, U.K.'s THE GUARDIAN reports UMG "has gained two months' more breathing space as it battles to persuade the European commission to approve its £1.2bn takeover of EMI. It had previously been thought that UNIVERSAL's parent company VIVENDI would have to hand over the £1.2bn to EMI owner CITIGROUP in SEPTEMBER, 10 months after the deal was announced, regardless of whether the takeover had been cleared."
The report claims, at CITIGROUP's request, the deadline has now been pushed to the end of NOVEMBER.