Archives

Sony Music, BMG Merge to Form World's 2nd Largest Record Label

Authored by Mark Hefflinger on August 6, 2004 - 3:28am.
New York -- Sony Music Entertainment and BMG announced on Friday the creation of Sony BMG Music Entertainment, a joint venture that will become the world's second largest record label behind Universal and reduce the "Big 5" group of major labels to just four. The merger recently gained antitrust approval from both the Federal Trade Commission and European Commission. Former Sony Music chairman and CEO Andrew Lack will serve as CEO of the 50-50 joint venture, while former BMG chairman and CEO Rolf Schmidt-Holtz will serve as chairman. "The creation of Sony BMG Music Entertainment is a historic opportunity for us to build a new music company that we believe can thrive creatively and financially in a highly challenging worldwide music market," said Schmidt-Holtz. As a result of the merger, the combined company is expected to lay off as many as 2,000 employees, according to published reports.
tags: Sony Music | BMG Merge | Record Label |

Google Delays IPO Amid Slow Online Bidder Registration Process

Authored by Mark Hefflinger on August 6, 2004 - 3:27am.
Mountain View, Calif. -- Search engine firm Google will delay its long-awaited IPO for a week to deal with an unforeseen delay in registering bidders for its auction-style IPO on a special website, the Associated Press reported. The delay is not blamed on any technological glitch, but rather on the unorthodox online auction format that has not been tested. Google has not officially announced a date for its IPO, but was generally expected to begin the auction a week after launching the IPO website, which went live last Friday. The company also revealed this week that it may have sold over 25 million shares illegally, failing to register them with the SEC, and will shell out nearly $30 million to employees and contractors who originally purchased them. CNET News.com also reported on an internal memo, circulated this week at one investment bank, that read, "There is unconfirmed speculation that Google is considering pulling its IPO, due both to a poor reception for the offering and the issue reported yesterday with shares issued to employees and consultants that it failed to register."
tags: Internet | IPO | Google | Registration Process |

BBC Technology Union Backs Off after Broadcaster Threatens Legal Action

Authored by Mark Hefflinger on August 6, 2004 - 3:26am.
London -- Bectu, the union that represents nearly 25% of BBC Technology's staff, said it has abandoned a second proposed strike after the BBC made a "serious" legal threat to take it to court. The union opposes the sale of BBC Technology to Germany's Siemens, the fourth-largest mobile-phone company in the world, and threatened to go on strike during the Olympics at the end of July and a second time in mid August. The first proposed two-day strike was called off after Siemens made a revised offer to BBC Technology staff on pension plans and conditions. Even so, the union says it is seeking assurances from Siemens regarding pension guarantees and the touchy subject of relocating staff to different cities. Bectu has threatened to take industrial action if it does not receive sufficient assurances. "There are still a significant number of issues unresolved between Bectu and the corporation concerning BBC Technology which, if not resolved, will lead to a further ballot for industrial action," said Bectu's Gerry Morrissey.
tags: Broadcaster | BBC Technology | Threatens | Legal Action |

Bankrupt Cable TV Firm Adelphia Expects Sale After Labor Day

Authored by Mark Hefflinger on August 6, 2004 - 3:25am.
New York -- Bankrupt cable TV operator Adelphia Communications announced on Friday that financial advisors appointed to manage the company's sale process have been in discussions with potential bidders and expect to start the sale process shortly after Labor Day. Adelphia, the nation's fifth-largest cable company, filed for Ch. 11 earlier this year after an accounting scandal involving the company's founding Rigas family led to eventual convictions on fraud and conspiracy charges. Fellow cable operators Time Warner, Comcast and Cox are reported to be the likeliest bidders for Adelphia, which claims 5 million subscribers in markets including Los Angeles.
tags: Cable TV | Adelphia | Bankrupt | Labor Day |