Is BMG, the Bertelsmann/Kohlberg Kravis & Roberts joint venture set to stump up the cash to buy the Warner Music Group in the latest round of record company horse trading?

According to a report by US finance website CNBC, the company’s original bid for the publishing division of the group, Warner/Chappell Music fell short of the desired asking price, but this time they’re going for broke and trying to find a cheque big enough to afford the whole Warner Music Group.

Industry sources suggest that if the bid is successful, BMG and its partners will sell off the parts of the business they don’t want (i.e. those which are unprofitable or less profitable) – most likely to their rivals such as Universal and Sony.

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