ENTERTAINMENT INDUSTRY Time Warner weighs new bid for music unit

Two companies are vying for Time Warner's music division.
LOS ANGELES (AP) -- Time Warner Inc. is considering a $2.5 billion bid for its Warner Music Group from former Universal Music head Edgar Bronfman Jr. and Hollywood billionaire Haim Saban, according to sources familiar with the matter.
It had appeared that EMI Group PLC, the world's third-largest music company, was the front-runner to buy Warner Music, but that changed late this week when EMI announced it had been told Time Warner was now considering the Bronfman-Saban group's offer.
"Time Warner has tonight informed us that they are now considering a possible proposal from another party as an alternative to our own firm offer," EMI chairman Eric Nicoli said in a statement.
The offer
The British company behind acts like Radiohead, Kylie Minogue and Norah Jones has reportedly offered Time Warner about $1 billion in cash plus a stake of about 25 percent in a merged company for the music division of Warner Music Group.
Time Warner's board met Thursday to discuss both EMI's bid and the Bronfman-Saban offer, two sources speaking on condition of anonymity said, but is only giving the Bronfman-Saban group a few days to show it can complete its bid.
The Los Angeles Times reported Friday that Bronfman-Saban is now the front-runner but has only until Sunday to seal the deal or Time Warner will resume negotiations with EMI. The Wall Street Journal said the Bronfman group was Time Warner's preferred candidate to buy Warner Music and had until the end of the weekend to negotiate a final deal.
EMI, Time Warner and a Bronfman representative declined to comment.
The Bronfman-Saban bid was made earlier this week, more than a month after EMI entered into nonexclusive talks with Time Warner about buying Warner Music, home to Madonna, R.E.M. and the Red Hot Chili Peppers.
EMI said Wednesday its talks with Time Warner were progressing well and had reached "an advanced stage."
Some analysts have speculated a Bronfman buyout deal would have a better chance to pass regulatory muster, particularly since two of the other three major music companies, Sony Music and BMG, are currently working through a proposed merger agreement.