Paris, July 02: Media giants AOL Time Warner and Bertelsmann are making headway in talks over a music merger and could hammer out a deal over the next couple of months, sources close to the companies said on Tuesday. The books-to-television groups are hammering out details of a joint venture of their Warner Music and BMG recorded music businesses in a deal that would bring together artists ranging from pop queen Madonna to Latin rocker Santana, sources said.
AOL Time Warner, Warner Music, Bertelsmann and BMG all declined to comment.
Ranking as the world's fourth and fifth-biggest music companies, Warner Music and BMG are under pressure to do a deal in an industry ravaged by piracy and grappling with an outdated business model.
A deal would leave rival EMI Group, which has held talks with both companies in recent months, out in the cold. However, some sources said EMI was not necessarily out of the picture yet and could still attempt to revive talks.
Bureau Report