Universal Hots Up Music Merger Race
Byline: BILL CONDIE
THE major shake-up of the global music industry continues as Universal Music Group, the world's largest record label, said it would buy DreamWorks Records for an estimated $100 million ([pounds sterling]60 million).
At the same time, EMI shareholders have requested further details of talks the company is having with Warner Music in a deal that could be worth more than 10 times that.
The industry is facing a wave of consolidation in the face of falling CD sales, which it blames on illegal file-sharing on the internet.
As part of that process, Sony Music last week proposed a merger with Bertelsmann's BMG.
While the terms of the Dream-Works deal have not been made public, it is believed the company would be merged with Universal's Interscope-Geffen-A&M arm, whose stars include U2.
It represents a failure of Dream-Works founders Steven Spielberg, Disney executive Jeffrey Katzenberg and music mogul David Geffen to realise their vision of a groundbreaking …
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Publication information: Article title: Universal Hots Up Music Merger Race. Contributors: Not available. Newspaper title: The Evening Standard (London, England). Publication date: November 12, 2003. Page number: 36. © Not available. COPYRIGHT 2003 Gale Group.
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