RSSVivendi Buys BMG for $2.1 Billion
By Ed Oswald | Published September 6, 2006, 11:30 AM
French media giant Vivendi said Wednesday its Universal Music arm had agreed to buy BMG Music Publishing in a 1.63 billion euro ($2.1 billion USD) deal. In return, BMG parent Bertelsmann AG has agreed to pay $60 million to settle litigation surrounding its support of Napster.
Vivendi's offer topped six others who were vying for the company, which owns the rights to chart-topping acts such as Justin Timberlake, Coldplay and Christina Aguilera. Warner Music Group and Viacom had also made bids for the publisher, according to news reports.
"The acquisition of BMG Music Publishing is a unique opportunity to grow our music publishing business and enhance the value of Universal Music Group at a time when the music market is improving, supported by technological innovations and digital sales," Vivendi chairman and CEO Jean-Bernard Lyvy said.
BMG is not a label that actually produces the music; rather, it makes its money through the actual sales of music and through licensing deals. Vivendi said the publisher would be integrated into Universal Music subject to regulatory approval.
In addition to the buyout, Bertelsmann also announced that it would settle all litigation with Universal regarding its support of Napster. The $60 million payment would cover legal fees and expenses surrounding that case, the company said.
Well what are we down to...one major lable still owned by a US Company? What a concept. Buy out the US record industry, join the RIAA, then lobby for legislation that pumps money overseas. Ya got to love it.
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...and promptly accuses loses and needed consolidation on piracy and p2p.
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Corporate Sloth #442 buys out Corporate Sloth #441... who cares. Some day "musicians" will realize they need to actually "perform" for a living, instead of whining about royalties from copyright strong-arming while relaxing in their MTV-crib hot-tubs.
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