Bug Music, which today announced it has secured a $200 million credit facility led by JP Morgan, is reportedly in talks with Chrysalis Group. Said Bug Music CEO John Rudolph in the press release, "The significant upsizing of our credit facility will enable Bug Music to continue to have the financial resources to pursue acquisition opportunities and will enable us to continue to grow the company effectively."

As for acquisitions, The Times reported Bug has had talks with Chrysalis. The article singled out Primary Wave as a possible acquirer or merger partner for Chrysalis. EMI and Warner Music Group are not believed to be interested. Earlier this year, an offer by EMI was rejected for being too low. The poor credit market, which has since worsened, was blamed for the declined bid.