Steve Jobs, Apple Computer’s chief executive, said his company never made any offer to invest in or acquire Vivendi Universal’s Universal music division, but he did not deny the two groups were in talks, nor did he rule out a possible bid over the next few weeks.
Mr. Jobs was responding to media reports on Wednesday attributed to Vivendi board member Claude Bebear, who was quoted as saying the computer company would “probably” make a $6 billion bid for the French media group’s music division. He added that the $6 billion figure was “a bit low.”
A Vivendi spokesman later said Mr. Bebear denied having “given a view on any negotiations which may be underway.” However, Vivendi insiders said that contacts with Apple were ongoing and could lead to an offer.
Meanwhile, USA Interactive has become the latest media group to file a lawsuit against Vivendi Universal in a move that could hold up the French company’s planned sale of its U.S. entertainment assets.
News source: MSNBC - Apple denies bid for Universal Music
View: Neowin - Apple Buys Universal Domain
View: Neowin - Apple Interested in Buying Universal music from Vivendi
Mr. Jobs was responding to media reports on Wednesday attributed to Vivendi board member Claude Bebear, who was quoted as saying the computer company would “probably” make a $6 billion bid for the French media group’s music division. He added that the $6 billion figure was “a bit low.”
A Vivendi spokesman later said Mr. Bebear denied having “given a view on any negotiations which may be underway.” However, Vivendi insiders said that contacts with Apple were ongoing and could lead to an offer.
Meanwhile, USA Interactive has become the latest media group to file a lawsuit against Vivendi Universal in a move that could hold up the French company’s planned sale of its U.S. entertainment assets.
News source: MSNBC - Apple denies bid for Universal Music View: Neowin - Apple Buys Universal Domain View: Neowin - Apple Interested in Buying Universal music from Vivendi
The sale of Universal Music group, the world’s number one record company, would need the approval of Barry Diller, chairman of the USA Interactive e-commerce group. Mr. Diller last year merged his cable channels business with Universal Studios in a complex $12 billion transaction.
USA Interactive said Vivendi Universal could sell “virtually none” of the assets within Vivendi Universal Entertainment namely Universal film and television, Universal Music, a games business and several theme parks without obtaining USAi’s consent.
Mr. Diller resigned as chairman of VUE last month, citing a conflict of interest. Frequently mooted as a potential purchaser of some VUE businesses, Mr. Diller is now suing Vivendi Universal for allegedly breaching its obligations over tax payments. He is demanding “tax distribution payments” relating to USAi’s preferred interest in VUE worth $750 million.
Mr. Bebear, seen as the power behind the throne at Vivendi Universal, chairs the group’s strategy committee and was instrumental in forcing out former chief executive Jean-Marie Messier. Such outspokenness from Mr. Bebear is not out of character. Last May, the honorary chairman of Axa stunned the French establishment with a radio broadcast that effectively ordered Vivendi Universal’s board, of which he was not then a member, to oust Mr. Messier.
Apple, which on Wednesday reported lower earnings and flat revenues in its second quarter, was expected to soon launch an online music service on which consumers can download content from several large music companies. Investors have questioned why Apple would want to buy a music group when it could license music from major labels.
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