Apple Computer is in discussions to buy Universal Music, the world's biggest record company, according to media reports. The computer maker is believed to be willing to pay $5bn-6bn for Universal, which has been put up for sale by its cash-strapped parent company, Vivendi.
Vivendi wishes to raise about $7bn by selling some or all of its entertainment assets, which also include television and film studios and theme parks. Neither company would comment on the report, but analysts told BBC News Online that such a deal would make little sense for Apple. "It wouldn't change our recommendation on Apple stock," said one analyst. "But since we were already recommending clients to sell, things couldn't get much worse."
Apple's shares fell almost 7% in early trading in New York, before recovering slightly.
News source: BBC News