One of the largest companies active in the CD/DVD business, AOL/Time Warner is in talks to sell their CD/DVD replication division Warner Music. The company is currently in talks with Cinram and Matsushita Media Manufacturing. The company hopes that with selling this part of the company it is able to pay off a lot of their multi billion debts.
A likely bidder for the manufacturing business is Cinram International of Toronto, the largest company specializing in making CD's and DVD's. Cinram has said it is seeking to expand through acquisitions, and it signed an agreement last month with Warner Music to distribute its CD's in Canada. Cinram makes some CD's for Warner Music as well. A spokesman could not be reached for comment. Another possible bidder is Matsushita Media Manufacturing, a partnership of Matsushita of Japan and Eastman Kodak. |
The company is selling the CD/DVD manufacturing part, but wants to keep the Music division. According to the article the company makes only small margins on the production of the CD/DVD manufacturing but makes good profits on the sales of music and movies. Read the entire story here.
Source: Nytimes
