Reported Pricetag For Napster Settlement Up To $100 Million
March 28, 2007 at 5:54 AM (PT)
THE LONDON TIMES reports that EMI is believed to have received up to $100 million (£50.8 million) from BERTELSMANN to settle the long-standing litigation relating to NAPSTER (NET NEWS 3/26).
The BRITISH company refused to disclose how much money it had received after it revealed that BERTELSMANN had settled late on MONDAY, but THE TIMES has learned that the figure paid out was well above $50 million and approaching $100 million.
BERTELSMANN disclosed that it had set aside $101 million (£68 million) in its recently published accounts to pay legal costs, and EMI is thought to have received a significant proportion of this amount. EMI was the only remaining music major suing BERTELSMANN, after VIVENDI’s UUNIVERSAL MUSIC GROUP agreed a $61.2 million settlement last year. SONY and WARNER MUSIC are thought to be maintaining a watching brief.
The windfall is a boon to EMI, which has suffered amid a sharp decline in lucrative CD sales. The company issued two profit warnings this year, revealing that its second-half recorded music sales were down 15%, prompting a takeover approach from WARNER MUSIC.