Universal Seeks To Buy BMG Publishing
November 3, 2006 at 7:14 AM (PT)
REUTERS reports that UNIVERSAL has asked the EUROPEAN COMMISSION for permission to purchase BMG MUSIC PUBLISHING for 1.63 billion euros ($2.08 billion).
"We're hoping that it is going to be a relatively straightforward process given that we're creating a market leader which still leaves lots of scope for competition," a spokesman for UNIVERSAL MUSIC said.
He said the companies are now the No. 3 and 4 players in music publishing, but would have a combined market share of 22%, slightly larger than that of the current market leader, EMI.
Consideration of the proposed merger will take about a month, after which the EC will either approve it, extend its deliberation for two weeks, or order an in-depth, four-month investigation.