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According to The Associated Press the Universal Music group has reached a tentative agreement with German media company Bertelsmann AG to purchase BMG Music Publishing for $2.05 billion.
After an intense bidding war involving as many as 15 separate parties including Viacom and Warner Music Group, the deal is set to be made official in Paris as early as today (September 6th).
In 2005, BMG Music Publishing generated nearly $465 million alone and this new deal will catapult the newly merged entity into the No.1 spot amongst music publishing companies, replacing former No.1 company EMI.
BMG Music Publishing owns the rights to over 250 catalogs of music, which includes more than 1 million songs by artists such as Nelly, Maroon 5, Britney Spears, 50 Cent, Mary J. Blige and Mariah Carey as well as many other top selling acts.
Universal will absorb BMG into its operations as soon as the deal is made final, but will "remain competitors" until that time, says an annonymous executive familiar with the deal.
In addition to a number of executive changes, a number of layoffs are also expected to occur once the ink dries on the final deal but the extent of the effect is not yet known.
Source: sohh.com
After an intense bidding war involving as many as 15 separate parties including Viacom and Warner Music Group, the deal is set to be made official in Paris as early as today (September 6th).
In 2005, BMG Music Publishing generated nearly $465 million alone and this new deal will catapult the newly merged entity into the No.1 spot amongst music publishing companies, replacing former No.1 company EMI.
BMG Music Publishing owns the rights to over 250 catalogs of music, which includes more than 1 million songs by artists such as Nelly, Maroon 5, Britney Spears, 50 Cent, Mary J. Blige and Mariah Carey as well as many other top selling acts.
Universal will absorb BMG into its operations as soon as the deal is made final, but will "remain competitors" until that time, says an annonymous executive familiar with the deal.
In addition to a number of executive changes, a number of layoffs are also expected to occur once the ink dries on the final deal but the extent of the effect is not yet known.
Source: sohh.com