View Full Version : Apple negotiating to buy Vivendi Music

15-04-2003, 04:57:53
They are going into digital download of music for sale, one way or the other, regardless of whether they actually buy Vivendi Music. Apple wants to get a more secure revenue stream then their current line. They say their future business model is to... get this... sell music for downloading at a reasonable rate. They are stating that each song will run somewhere between $0.25 to $1.

There are already grumbles from the current big names about Apple's plan, as it would so undercut them, it isn't funny.

15-04-2003, 08:13:13

April 14, 2003 | Paul Thurrott
Microsoft, and now Apple, Consider Universal Music Purchase

The recent revelation by "The LA Times" that Apple Computer is considering purchasing at least a piece of Universal Music is interesting news in light of Apple's plans to unleash an online music store, but here's a fact most of the articles about this event have conveniently overlooked. Apple isn't the first high-tech company to consider purchasing Universal Music, and it isn't the most serious about the potential purchase. Microsoft first looked into buying the company; it wasn't until that deal fell apart that Universal Music owner Vivendi approached Apple CEO Steve Jobs.

Here's what really happened. Plagued by debt, Vivendi has been trying to sell parts of its business, including Universal Music, for months. On a few separate occasions, the latest as recently as last fall, the company entered into discussions with Microsoft over an outright purchase of Universal Music, a partial purchase, or an investment in the company. However, those talks all ended without a deal. This weekend, as news of Apple's interest in Universal Music surfaced, speculation ran rampant on the Internet that Microsoft was once again looking at purchasing Universal Music. No legitimate news sources have corroborated these reports, however.

Discussions between Apple and Vivendi have been less than fruitful, if you'll pardon the pun. The two companies discussed Apple purchasing as much as a third of Universal Music, but sources close to the companies have described the talks as "exploratory" only, and they apparently never went very far. This month, however, Apple will release a new online music store that provides songs from all five major music companies, including Universal Music, for roughly 99 cents a song. The store will initially require Mac OS X and Apple iTunes, although Apple will eventually add Windows compatibility to serve the other 97 percent of the market.

Vivendi's desire to unload Universal Music at this time makes some sense when you consider that audio CD sales have plummeted 25 percent since 2000, thanks largely to online piracy. Apple's new store hopes to curtail that piracy by making legitimate music available inexpensively, according to sources. However, Apple's stock nose-dived 8 percent Friday when rumors about the talks with Vivendi surfaced, suggesting that investors aren't too keen about Apple picking up the struggling music giant.

17-04-2003, 19:50:18
Vivendi was spreading around that Apple wanted to buy them. Stevie boy told his stockholders that it is all a blatant lie, and he's thinking of how to get even with the Vivendi VPs running their mouths off about something that isn't even being considered, and never has.

So, never mind. I just wonder how the Vivendi VPs got it in their head that Apple was talking to them about buying the music if someone from Apple wasn't talking to them?

17-04-2003, 21:59:40
Apple registered www.AppleUniversal.com last week.

There's no way Apple could afford to buy Vivendi who are a hugh company, probably way bigger than Apple, but buying Universal from Vivendi would be a shrewd move for both parties. Good for Vivendi because Universal have been spending and losing money like there's no tomorrow recently, and good for Apple because they need access to a major player in the music business (Universal's back catologue is pretty much as good as anyones) to prevent losing out totally to Microsoft when Microsoft carry through their joint venture with all the other majors to distribute music through MSN.com.

17-04-2003, 23:25:00
The whois record also contains ‘Hahahah!!! Tricked You!!! April Fools Tricked You! HA HA HA HAHAHA’

17-04-2003, 23:25:25
Er, link: http://www.networksolutions.com/cgi-bin/whois/whois?STRING=appleuniversal.com&SearchType=do&STRING2.x=32&STRING2.y=11

17-04-2003, 23:45:29
Hmmm, ok, you got me there.

The rest of what I said is true though.

21-04-2003, 08:07:53
Vivendi wasn't saying Apple wasn't out to buy all of Vivendi, just Vivendi Music.

They did apparently talk about that (according to both), but it was just supposed to be 'off the record and under their hat', and Stevie is awfully upset about all the big mouths at Vivendi.