Blues Traveler, Sting, Sheryl Crow and Hanson may be schlepping their goods to a new home base soon. |

The financial world began buzzing with rumors that music giant PolyGram may go up for sale after Netherlands-based Philips Electronics announced Thursday that it is rethinking its 75 percent stake in the company. Following Philips' statement, PolyGram's stock soared as investors began preparing for a tremendous buyout.

PolyGram -- which includes Mercury, A&M, Def Jam, Capricorn and Island records -- suffered financial hardship during the first quarter of 1998, Dawn Bridges, a spokeswoman for the music giant told JAMTV on Friday.

According to an inside source who asked to remain anonymous, Philips CEO Cor Boonstra has a history of selling off slow-growth businesses under his command. The push to sell may also have been accelerated by PolyGram's recent foray into the film world with the comedy "Bean."

"That's a risky move for PolyGram; they will either make a lot of money or they will get killed," the source said. "That's makes someone like Philips very nervous."

Potential bidders for PolyGram include movie and music interests like Viacom, MGM, Disney and the EMI Group, which disclosed last week that it is in serious talks with a company believed to be Seagram Co. (Anni Layne)