Latest reports from Vivdendi indicate three of the people biding to take over the group's entertainment empire, including current favourite Liberty Media, have included a take over of the group's record labels (including Polydor, Mercury, Island, Interscope and Geffen) in their bids. As previously reported Vivendi chief executive Jean-Rene Fourtou initially indicated his record labels weren't for sale, but his position on the music companies has been less clear in recent weeks as potential buyers enter negotiations.
According to insiders, bids received from the previous Universal owners the Bronfman family, oil billionaire Marvin Davis and Liberty Media all include Universal Music in their acquisition plans. Metro Goldwyn-Mayer is believed to have offered to buy the whole company but not the music assets. NBC and MTV owners Viacom are yet to make formal bids.
Many reckon Vivendi may well include the record labels in any deal because it would push the asking price above the £7 billion Vivendi is currently in debt – plus it would fit in with the group's recent mutings that it wants to pull out of America and concentrate on its French businesses.
The Vivendi board are looking at the bids and are set to meet on 1 Jul to discuss the sale. It hopes to conclude a sale by August.