Matsushita swaps U stox
Stock trade to aid music distribution
Matsushita said it hopes to take the lead in distribution of music via the Internet and other digital media.
Matsushita let go of some of its 20% share of Universal to finance its purchase of an 8.1% shareholding in Seagram's Polygram NV in the Netherlands, a Matsushita spokesman said in Tokyo. The Japanese electronics giant retains about 8% of Universal Studios.
Information on how the swap might affect the structure of the Universal Music Group could not be obtained over the holiday weekend. Matsushita's announcement referred only to Polygram, but that company's U.S. and international music holdings are being integrated into the new Universal Music Group.
Neither Seagram nor Universal execs could be reached for comment.
"With the purchase in Polygram, we want to strengthen our musicsoft and DVD (digital videodisc) divisions," the spokesman said.
$840 million deal
The Nihon Keizai Shimbun business daily said the transaction was worth $840 million dollars, but the Matsushita spokesman declined to confirm the figure.
Seagram closed its purchase of PolyGram for $10.4 billion dollars earlier this month.
In 1994, Seagram, a Canadian firm, bought MCA/Universal from Matsushita.
The new Universal Music Group, comprising Polygram and the former Universal diskeries, leads the global music market with a combined share of approximately 25%.
-- Compiled from wire service reports
