Regulators Reportedly Tell Universal To Sell 25% Of EMI Before Deal Approval
At a meeting late on Friday, The European Commission reportedly told Universal Music representatives that it must sell the global rights to EMI's top label Parlophone, including the rights to Coldplay and Kyle Minogue, for the deal to go forward. Paralphone is estimated to be worth closed to $500 million.
The divestiture reports, which first surfaced in the Daily Mail over the weekend, mean that UMG must sell a full 25% EMI. The demand comes just as regulators from both the European Union and the U.S. near key votes that could decide the fate of Universal's effort to buy EMI's recorded music division.
The full college of EU commissioners are scheduled to vote on the merger late this week on Thursday or Friday, according to multiple reports. They have until September 27 to issue a public ruling.
In the US, the Federal Trade Commission has been reported to be ready to reveal their decision during the week of September 24th.