“Sony and Bertelsmann said on Tuesday they would unravel their joint venture in music, ending a four-year partnership that has generated more dissonance than harmony,” Mark Landler reports for The New York Times.
“Sony of Japan will buy Bertelsmann’s 50 percent stake in the venture, Sony BMG Music Entertainment, for $900 million — substantially less than Bertelsmann of Germany hoped it would command,” Landler reports.
“Under the terms of the partnership, either Sony or Bertelsmann could have forced a sale next year, and executives at Bertelsmann said they worried that the industry might deteriorate further,” Landler reports.
“By folding BMG into its operations, Sony would be within striking distance of Universal Music as the world’s largest music company. Its roster of entertainers includes Alicia Keys, Avril Lavigne and Justin Timberlake,” Landler reports.
“Bertelsmann had once hoped to sell its share of Sony BMG for as much as $1.6 billion, according to industry executives. But in a difficult market, it was forced to settle for a $600 million cash payment, plus $300 million in cash in the venture that belonged to Sony. It will also get its share of the cash in the venture — $300 million — as well as some tax benefits,” Landler reports.
Full article here.
[Thanks to MacDailyNews Reader “Robert B,” for the heads up.]