Vivendi Rejects Softbank's Bid for Universal Music

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July 19 (Bloomberg) -- Bloomberg's Andy Fixmer explains why this Vivendi's rejection of Softbank's $8.5B bid underscores the changing nature of the music industry. He speaks to Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Andy, softbank's bid valued at roughly at 2 million more than is market value.

That is a pretty good price, but yet they said no.

That is a pretty amazing price.

It took a lot of people by surprise.

What underscores it is the changing nature of the music biz.

Universal just last year acquired emi.

That this is as getting much, much bigger.

They are biggest director -- worker company in the world.

And one of the biggest music publishers.

The combination if you wanted to start new technology services involving music would be keep it off for a lot of advantages.

The premium on that business because of his pure scale is maybe weren't. i do not really understand where the profits are in the music business now.

I am not understood this is total won a grammy.

I do not get it.

I do not understand in this changing world with pandora and the emergence of spotify it where the real money is.

Where does the music industry think is greatest value is right now?

Fox is deftly in the digital space.

It is definitely an mobile.

-- it is definitely in the digital space.

You can listen to spotify for free, but if you want to take on the go, you are going to pay $10 a month.

It goes for any streaming services.

Or you are going to buy a tracksuit can listen to it any time you want unless opposed to is cyclic throughout your pandora station.

That's mobility and that ability to take it on the road with you is where the premium is coming from.

That is where all of the growth in this industry is coming from.

Do you think ultimately -- the music business has been making a lot of money over the last 20 years.

Repackaging the new formats so when they taken apple -- take an apple -- album --users picking whichever songs they want.

Have they figured out how to make a profit without having to sell 12 songs every time they got an interest in one?

Ask what is happening is they are taking a longer view, think about the film industry.

They come out with the film one week and it a box office run and then there are 10 years of payments that follow.

That's kind of how the music industry is looking at a sunk.

A song comes out and there's a huge spike in the level of interest in that piece of music.

Then it calms down and there is this long to tell that people keep streaming and buying get.

It is on the radio.

It is tweeted.

That long tail is where they are seeing the profits coming from.

What's interesting.

-- interesting.

This text has been automatically generated. It may not be 100% accurate.

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