DreamWorks Gobbled Up By Universal

DreamWorks, the conglomerate

owned by Steven Spielberg, Jeffrey Katzenberg and David Geffen, have agreed to

sell their music division, home to such acts as Mystik, Q-Tip, Sleepy Brown, Vishuss,

Floetry and Nelly Furtado.

Sources stated

that the recorded business will be gobbled up by the mammoth Universal Music

Group for $100 million dollars.

Universal is expected

to make significant cuts to the 120 person staff at the Beverly Hills based

record label, including the head of the label, Mo Ostin.

The 76-year-old

Ostin is legendary in music business circles, developing such artists as Neil

Young, Jimi Hendrix, the Red Hot Chili Peppers and others.

The music industry

is coping with the worst slump in 30 years, blaming rampant internet piracy

and a culture of bootlegging as the main reason behind the downward spiral.

Recently, Sony

Music was swallowed by up BMG and Warner is attempting to sell their music group

to British conglomerate, the EMI Group.