Microsoft courted by Vivendi to buy music unit-WSJ
14 Apr 2003, 03:08am ET
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NEW YORK, April 14 (Reuters) - Microsoft Corp. (NASDAQ:MSFT) is among companies approached by Vivendi Universal Music Group (NYSE:V)(SBF:EAUG) executives in their bid to find buyers for the unit, the Wall Street Journal reported on Monday.
The report comes a day after a Paris-based source told Reuters that talks between Vivendi Universal and Apple Computer Inc. had entered a crucial phase which could make or brake a deal for the world's largest record company.
The Reuters source played down speculation the sale of Universal Music to the firm run by California computer guru Steve Jobs -- for up to $6 billion as first reported by the Los Angeles Times on Friday -- was a done deal.
On Monday, citing people familiar with the matter, the Journal said Universal Music bosses, including Chairman Doug Morris and Interscope Geffen A&M label chief Jimmy Iovine, had put out feelers for possible buyers or investors, but they now appear to be taking a wait-and-see approach.
Approaches to Microsoft were in the hope of finding a friendly investor to take over Universal Music, perhaps as part of a management-led buyout, the Journal reported.
Apple and Microsoft officials did not immediately return calls seeking comment early on Monday, and a Vivendi official in Paris declined comment.
The Journal said people close to Jobs insisted he was only interested in accessing music for Apple's new service, not in buying a record company. Universal's roster includes Eminem, U2, and Shania Twain.
Apple was aided by investment bank Morgan Stanley in early talks, and Jobs is believed to have spoken at least once by phone with Vivendi Chairman Jean-Rene Fourtou about the idea, the Journal added.
Separately, the Journal reported that Apple would be launching its own music service in coming weeks, with songs from all five major record labels.
Citing people with knowledge of the matter, the newspaper said the service was more consumer-friendly than most other legitimate online-music services, with a simplicity that makes it easy for consumers to purchase a song and move it to the popular Apple iPod devices.
Even so, it will only be available to Mac users, who comprise only about five percent of the global market. Currently, most other online music services -- including the record-label backed services pressplay and MusicNet, as well as closely held Listen.com Inc.'s Rhapsody service -- do not support Apple's Macintosh software.
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