Quantcast
Fingers point to a mechanism in Calder’s BMG deal, whereby he can trigger the sale of his 80% of Jive to BMG—as long as BMG still distributes Jive. The cost of Calder’s 80% would be determined by a pre-existing formula involving a multiple of earnings, or net sales, over a three-year period. Industry jaws are dropping over the massive leverage this gives Calder.

JIVE TALKING ABOUT LEAVING
BMG FOLD

It'll Take Big Bucks To Keep Calder’s Label…Real Money, Not That Make-Believe Euro Crap
After massive conjecture—and as his Zomba/BMG distribution deal expires—it does not appear Clive Calder has a place on BMG’s future management team.

Talk of BMG and Jive has come to the forefront as discussions regarding the company’s future are currently taking place as the company’s senior management team gathers in Miami for their annual worldwide meetings.

Following the demise of a proposed merger with EMI, BMG will have to pay big bucks to keep Calder’s label in the fold as his current distribution deal is coming to a close, and other interested parties are making themselves known.

Jive’s marketshare is nearly one-third of BMG’s total, and losing the independent would drop BMG to last place among the five majors. To make matters worse, BMG insiders have already said the company could post losses of close to $150 million this year. It is believed to be the first year in its history that the company will post losses.

Bertelsmann chief Thomas Middelhoff has brought up the possibility that the German media giant might sell off some of its non-core businesses, before it eventually goes public. Following these statements, speculation abounds that the loss-making music group may very well be considered one of these non-core ventures.

Meanwhile, Jive has already pulled its distribution deal for Canada from BMG in March, which many saw as a foreshadowing of things to come regarding the U.S. market.

Interestingly, fingers point to a mechanism in Calder’s BMG deal, whereby he can trigger the sale of his 80% of Jive to BMG—as long as BMG still distributes Jive.

The cost of Calder’s 80% would be determined by a pre-existing formula involving a multiple of earnings, or net sales, over a three-year period.

Industry jaws are dropping over the massive leverage this gives Calder.

Many think that Calder will get back BMG’s 20% of Jive and then merge his company with EMI—thus becoming a huge stockholder in the British company. EMI distributes much of Jive’s repertoire in parts of Europe and Latin America, and will likely get Canada as well. Some BMG insiders have said that Calder is telling them that BMG will keep Canada if a new deal can be worked out regarding the U.S. and some other territories that are now distributed by EMI.

Said scenario would turn Calder’s guesstimated billion-and-a-half dollar asset into a possible $3 billion in EMI stock. Calder’s attorneys Allen Grubman and Artie Indursky have been collaborating with him and analyzing various options that lay before the Zomba/Jive chief.

Wonderers wonder who at BMG or parent Bertelsmann is going to ultimately decide what to offer Calder to keep him in the mix. Does Bertie honcho Middelhoff or BMG’s Rolf Schmidt-Holtz have the music expertise to close this deal? And if BMG is indeed interested in selling now, how much does the company really care about economics over perception?

NEAR TRUTHS: SPRING BLOOMS
Here come the big guns. (3/28a)
THE COUNT: COLDPLAY IS HOT, COUNTRY'S COOKIN' IN THE U.K.
The latest tidbits from the bustling live sector (3/28a)
CITY OF HOPE TAPS MARCIANO FOR TOP HONOR
This year's philanthropic model (3/28a)
TRUST IN THE TOP 20
Hip-hop is no longer hibernating. (3/28a)
UMG BROADENS SPOTIFY OFFERINGS
Sir Lucian and Daniel are in harmony. (3/28a)
THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)