Universal Music Saga Continues: Other Bidder Says Apple Buyout Could Spoil Other Deals

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The LA Times story that Apple is trying to buy Universal Music has ramifications that go far beyond Apple and the tech industry. The entertainment industry itself has machinations that are every bit as titanic as the struggles between Dell, HP, Oracle, Apple, Microsoft, and the other multibillion dollar competitors in tech. With the music industry struggling in the myopic quagmire its own policies have created in the struggle to control distribution, there is much jockeying of position among the major players involved.

One such major player is Marvin Davis, a billionaire from the oil industry who is making a US$15 billion bid for the entire Vivendi Universal Entertainment division of Vivendi International. Universal Music is the music arm of this division, and according to the LA Times, it is also the apple of Steve Jobsi eye. CBS Marketwatch is now reporting that Marvin Davis is not interested in the rest of the Universal empire if the music aspect of the business is not included. From that article:

"The Davis proposal from the beginning has always been for all the entertainment assets, and the music group is essential," the source said. "The transaction doesnit make sense without it."

The source then added, "If this (the Apple deal) were to happen or if Vivendi was to decide they would keep the music group, the Davis proposal would be withdrawn."

You can find the full article at CBS Marketwatchis Web site.

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