BMG’s planned takeover of Zomba – the biggest and most mainstream independent label in the world – has been approved by the EU. The major will pay about $3 billion for the label which counts Britney, N Sync and Backstreet Boys among its artists. The decision follows a number of blockages by the EU to the major label mergers, with officials saying this acquisition does not affect the major players too much - Universal and EMI will still dominate the European music markets even after the Zomba deal – and anyway BMG already had a 25% stake in the independent. "Over the years I have admired Zomba's impressive results,”
Bertelsmann chairman Thomas Middelhoff told reporters when he announced his takeover intentions in June. “Their achievements are perhaps the most spectacular in the industry."
While BMG’s expansion in the real world continues, it is pulling back on its projects in the virtual world. The group is hoping to sell its e-commerce company Bol.com and it looks likely it will pull the plug on Napster, which it was funding while the file-swapping service tried to find a viable legal way to supply music downloads. Bol.com is likely to be closed down if its rival Amazon isn’t interested in taking it over, while insiders reckon Napster will go if continuing legal wranglings with other majors in the US look like turning expensive.