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Jeff Bewkes, Financial Genius   Economic Slowdown Taking Toll on Tech
Sep 17 2008 9:44AM EDT

MySpace Music Delayed; Holdout EMI Set To Join

Sam Gustin writes: The major record labels may have to wait until next week for their salvation. The launch of MySpace Music has been delayed. The new ad-supported music joint venture from News Corp. and the major record labels won't launch until nest week, at the earliest.

Silicon Alley Insider reported the postponement. The launch was originally expected this week.

The hold-up is likely due to MySpace Music's nearing pact with EMI, the fourth and final major record label to join the venture.

As expected, EMI is set to join the three other major record labels, signaling a full buy-in by the recording industry. The four major record labels control about 80 percent of the legal -- and rapidly shrinking -- music market

Most observers expected the U.K.-based EMI, which is owned by private equity firm Terra Firma Capital Partners and run by the colorful Guy Hands, to join the party at some point.

Word is that EMI and MySpace are closing in on a deal which would unite the four major record labels in the project.

An EMI spokesperson would only confirm what we already know, telling CNET News that "companies were in talks." Another source said EMI and MySpace honchos are "trying to jump some final hurdles."

Once the deal with MySpace is completed, EMI will join Sony BMG, Universal Music Group, and Warner Music Group in an effort they hope will weaken the hold that Apple's iTunes music store currently has on the legal online music market.

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