The music industry may have a bit of life left in it after all. At least that’s the impression one is left with this week after Citigroup scored a better-than-expected $4.1 billion from two deals that mark the end of a months-long auction to sell off the parts of 114-year-old British music company EMI Group.
Vivendi’s Universal Music Group and Sony won the auction for EMI’s recorded music and music publishing operations, trumping bids by archrivals Warner Music Group and BMG Music Publishing at the 11th hour, reports Peter Lauria, editor-in-charge of Technology, Media and Telecommunications at Reuters. Universal plans to buy EMI’s recorded-music unit for $1.9 billion, according to a source involved in the process, snagging the rights to music by artists such as Coldplay, the Beatles and Katy Perry in the deal. A consortia led by Sony is expected to buy EMI’s publishing operation for $2.2 billion.
Score a point for Apple. Software maker Adobe scrapped its Flash Player for mobile devices after a mutli-year battle with Apple over the merits of the technology, which is used to view videos and play games on the Web. Take a look back at the legendary tech spat in this blow-by-blow timeline that stretches back to January 2007 when Apple launched its iPhone with a browser that was not compatible with Adobe’s Flash player. The company said in a blog post it plans to focus its future mobile browsing efforts on HTML5, a competing technology that is now universally supported on all major mobile devices.
Online business reviews site Yelp has hired bankers to lead an intitial public offering that could value the company at up to $2 billion, several people familiar with the matter told DealBook’s Evelyn M. Rusli. Goldman Sachs and Citigroup will participate in the offering, which is expected in the first quarter of next year, one of the sources said.
Pressure mounted on Japan’s Olympus to take radical action after it admitted to hiding losses on securities investments for decades, with the camera and endoscope maker’s largest foreign investor demanding the resignation of the company’s entire board. Southeastern Asset Management, which owns about five percent of the 92-year-old company, said Tuesday’s admission “changes everything”.
Brushing aside new Olympus President Shuichi Takayama’s insistence he was “absolutely unaware of the facts,” Southeastern told Reuters correspondents Sinead Cruise and Kirstin Ridley that any further reign of the Olympus board risked damaging the company’s key medical business. Takayama, a previous board member who was promoted last month, blamed former Chairman Tsuyoshi Kikukawa, Vice-President Hisashi Mori and internal auditor Hideo Yamada for the cover-up, saying he would consider criminal action.
Let the low-end tablet wars begin. Barnes & Noble unveiled a Nook-branded tablet on Monday, the company’s answer to Amazon.com’s recently announced Kindle Fire. At $249, the 7-inch Nook tablet is a bit pricier than the $199 Fire, but Barnes & Noble is betting that consumers will pay the extra $50 for the device because it offers faster processing speeds and 16 gigabytes of storage space compared to the Amazon tablet’s 8 gigabytes. Both devices hit shelves next week. Barnes & Noble, which operates a chain of 700 U.S. bookstores, also lowered the price on its Nook e-book devices in an effort to take on Amazon’s line of Kindle e-readers, which were recently reduced in price.
Early reaction to the device was varied. One analyst characterized it to Reuters as a “wow” product, while another said it will keep “Barnes & Noble shoppers loyal.” All Things D’s Peter Kafka called Barnes & Noble’s product pitch “a bit muddled” when it came to explaining how people will access content on the device: “Unlike Amazon and its Kindle Fire, Barnes & Noble isn’t marketing its tablet with a proprietary cloud service that will get you access to music, movies and TV shows. Instead, the bookseller is leaving that up to other cloud-based services, like Netflix and Pandora. But make no mistake — these are cloud-based services,” he writes. Why then was the company so eager to play up the Nook Tablet’s extra storage capacity if it expects you’ll be streaming most content, not storing it, wonders Kafka. Engadget takes the new tablet through its paces in a hands-on video.