Bronfman set to seal Warner deal

MEDIA entrepreneur Edgar Bronfman is expected to close his $2.6bn (£1.4bn) purchase of Warner Music as early as today, according to sources within the companies.

Bronfman and Warner announced the deal in November after EMI and Bertelsmann were edged out of discussions with Warner Music's parent Time Warner. EMI was seeking a $1bn minority stake in the company.

Warner staff were braced for the worst, with jobs expected to be lost in a restructuring involving $200m of cost cuts. Since the deal was unveiled, many music industry insiders have speculated that hundreds, or even thousands, would be cut from Warner's head count of about 5,300 employees.

Warner Music, home to Madonna and Missy Elliott, is the fourth-largest music company in the world with 12% market share but, in common with the rest of the industry, is struggling against dwindling CD sales and rampant online piracy.

But Bronfman, a former Seagram and Vivendi Universal executive, believes he can turn the company around.

No-one at Warner Music was available to confirm the news while a representative for Bronfman declined comment on the timing of the proposed deal.