Universal Music has agreed to buy DREAMWORKS RECORDS in a move to combat falling sales and the impact of the internet on the music business.
The DreamWorks label - which includes artists like Nelly Furtado and heavy rockers PAPA ROACH - have been sold to Universal for a reported $100 million (GBP62 million), although neither firms have disclosed the value of the deal.
Last week (ends07NOV03), SONY MUSIC - the second-largest music company - announced it was planning to merge with BMG, and EMI and WARNER MUSIC have also been in talks about a possible merger.
DOUG MORRIS, chairman and chief executive of Universal, says, "We are truly excited about the acquisition of DreamWorks Records.
"(The DreamWorks team) have built an incredible roster comprised of gold, platinum and multi platinum-selling artists as well as a host of new acts who will be successful in the future."
MO OSTIN, principal executive at DreamWorks Records, says, "Despite the challenges of the music business today, Universal is acquiring a wonderful asset and the sale will assure the strongest possible future for our artists."12/11/2003 13:49