Universal Music competitors are arguing that the firm's current EU divestments package related to the £1.2bn buyout of EMI Music does not go far enough.
Vivendi SA (VIV)’s Universal Music unit and European Union regulators met yesterday to discuss if the offer to sell 60 percent of EMI’s European assets satisfies competition concerns.
As revealed by Music Week, the 60% package would see UMG drop Parlophone UK and the Pink Floyd catalogue in Europe, amongst other concessions..
According to sources, Universal may have to dispose of global rights to EMI assets and put more up for sale to appease European Union regulators.
Simon Dyson, an analyst at Informa Media & Telecoms told Bloomberg Business Week: “If Universal Music has to give up the global rights for everything it would push the deal toward unprofitability,
“Universal has invested a lot of money into this deal and if it doesn’t go through, then they have to sell EMI, and companies won’t offer them anything near what they paid for it.”
Source: Bloomberg Business Week