Universal Music is willing to sell off a chunk of its catalog in order to pass muster with European Union regulators in its $2.15 billion bid to acquire BMG, Reuters reports. The Vivendi-owned publisher would jettison Zomba Music, which holds the rights to songs by such (former) hitmakers as Brittney Spears, Bryan Adams, Backstreet Boys, The Spice Girls and others. But divestitures won’t be enough for the deal’s main opponent, IMPALA, which represents 2,500 independent labels and publishers. IMPALA initially fought Warner Music Group’s plan to buy EMI, but eventually relented when WMG agreed to a number of concessions – a moot point, as EMI rejected WMG’s takeover proposal earlier this month, saying the price was too low.
As for the planned sale of Zomba, WSJ notes that at the moment, there is no buyer and no estimated value for the unit’s rights. EU regulators have a June 1 deadline to make a decision.
Related:
-- Warner, EMI Merger Could be Closer This Time; WMG Calls Talk ‘Preliminary’