Music-Merger Bid Plays Out
On June 21, Universal Music Group Chief Executive Lucian Grainge will press his case for a merger with EMI before the Senate's subcommittee on antitrust and consumer rights.
His argument boils down to this: Piracy and digital giants such as Apple and Google are such threats to traditional record companies that Universal needs to swallow its smaller rival to survive. It will be up to the Federal Trade Commission to approve the deal, in whole or in part, or to sue to block it. The European Commission has set a deadline of Sept. 6 to rule on the bid by Universal and its Fremch parent, Vivendi SA. In California, the state's attorney general is investigating whether the deal could harm consumers. Universal and Vivendi say they are confident they will win approval from both American and European regulators.
Music-Merger Bid Plays Out