Disney may be jumping into the big time music business by acquiring EMI's Virgin Records, The New York Daily News reports.
BMG and EMI have approached Disney about a ptential sale of the EMI unit to enable the two major music labels to merge. The two music giants need to satisfy European regulators' concern that their union would create an overly dominant force in the business. Divesting Virgin would probably do that.
But sources tell the New that EMI music honcho Ken Berry may be balking at selling Virgin off. Meanwhile, EMI's stock has been dropping, fueling speculation that its BMG deal is a dead issue.