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Microsoft Also Wants Universal Music?
rampant mac writes "An article over at the New York Post is reporting Microsoft has expressed interest in buying Vivendi's Universal Music Group, setting up a possible bidding war between the software maker and rival Apple Computer, according to sources familiar with the matter.
Microsoft's interest is said to be at the level of "poking around, kicking the tires," but it has indeed had conversations with Vivendi executives about buying the music division, sources said."
Here is a story from a few days ago about Apple and Universal.
It seems like everyone wants to buy Universal.
This could really give MS quite a bit of leverage if it ever needed it - "Upgrade now, get 50 free songs for Windows Media Player" or some such thing. I could possibly even be tied in to some future service like X-Box live.
It's obvious and clever at the same time.
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It doesn't surprise me at all that they want to head Apple off at the pass.
If they actually buy the company, I'm interested in seeing what stance they will take in the fight against p2p networks and media company's current fight against free sharing of media, knowing M$ can be very rough in the courts.
Obviously, MS isn't really interrested in buying Universal, but its good buisness to make sure that your competitors have a hard time pulling their deals.
MS makes a bid, forces apple to hike up their bid. In the end, MS doesn't buy anything and apple had to spend way more to get what they wanted, wich hurts them and therefore indirectly helps MS.
Is tricky, its devious, its evil...its Microsoft at its best.
You can't take the sky from me...
In fact, I hope they buy movie companies, publishers, etc. Sony has done the same thing and I see Microsoft and Sony as being the two competitors that need to be balanced.
Sony doesn't get a lot of flack in these parts because they haven't made the political mistakes Microsoft has, but they're just as much a threat with their stranglehold on manufacturing and content.
I would love to see Microsoft start spending their money in these areas.
-- You see, there would be these conclusions that you could jump to
If you recall correctly, then Vivendi itself asked Jobs to take up a minority share in Universal. Why? Because Steve's music subscription plan hit a sweet note with Vivendi executives. Steve might be in talks to buy Universal and that is a good thing.
About Microsoft, they have about 45 billion in liquid assets and they can afford to run the competitors out of business. Note that Vivendi has put up Universal on the block. For Microsoft to buy it, it will have to calm the anti-trust flames that will be stoked on both sides of the Atlantic. Also remember that the anti-monopoly enforcers in the EU have not yet announced the punishment for MS. It will be coming in the next few months and MS's lawyers will be advising that bidding for Universal now won't make things easier for them.
But, if MS is really determined to get Universal then it might take a year to complete the deal.
One thing, I will keep my fingers crossed that this does'nt go through.
This strikes me being one of those consolidations like what was going on during the Dot-Com bubble. To give but one example, Time Warner snarfing up AOL basically weakened both companies. I suppose if there was a company I would like to see get weakened, it would be Microsoft. However, even if the Uni deal went totally sour Microsoft would survive. Apple could go right down the tubes if this happened.
When I first heard about this, I thought that Apple was angling to buy Universal PICTURES on Pixar's behalf. That would make total sense, considering that Disney has not been an especially fair partner in their deal with Pixar, and Pixar has been one of the few bright spots on Disney's otherwise lackluster balance sheet. Even a threat of Jobs leveraging Apple to give Pixar its own friendly distribution path would be enough to scare Michael Eisner into giving Jobs whatever he wanted.
In any event, this deal makes zero business sense, and seems to be turning into a pissing match between Ballmer and Jobs. Jobs should know better...Ballmer is the one who drinks the most beer. He'll win. ~_^ (grinning, ducking and running)
Knowledge is power. Knowledge shared is power multiplied.
Correction...Apple now the backing of all 5 music labels for their online music service... http://archive.nytimes.com/2003/04/12/business/med ia/12MUSI.html?th
Its full steam ahead for apple!
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On the day that Slashdot ran the story about Apple buying Universal Music, there were also stories about Microsoft authorizing a port of Windows Media technology for embedded Linux [slashdot.org] and high-definition DVD [slashdot.org] at standard DVD bitrates using Microsoft-proprietary technology.
It's all part of the same story. The world is moving toward all-digital media formats. Microsoft wants all those formats to be Microsoft-owned. They sign up media producers with promises of copy control, pay-per-view and other DRM features. Already, some CDs have been released crippled for use on non-Windows computers (and some CD players).
I'm guessing someone at Apple sees a possible future in which new music won't play on any computer not running Windows. If all the major music companies sign on to lock down their content with MS technology, consumers may believe they have no choice but to stay "inside the lines." If Universal Music doesn't sign on to locked-down content, consumers probably won't tolerate severe restrictions from other content providers.
Microsoft makes some good stuff. But I'm hoping that we don't wind up in an all-Microsoft world.
When all you have is an axe, everything looks like a grindstone.