Sony Buys Out BMG
Tue, 05 Aug 2008 17:46:01
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Sony Corp. has decided to buy Bertelsmann AG's 50-percent stake in Sony BMG, bringing the label's entire roster—from Alicia Keys to Leona Lewis, Justin Timberlake to Bruce Springsteen—under the control of the Japanese company. According to a statement released by Bertelsmann today, Sony Corp.'s new imprint will be called Sony Music Entertainment Inc., a subsidiary of Sony Corp. of America. The deal is valued at $900 million, with Sony paying Bertelsmann $600 million for its portion of the four-year-old partnership. However, a person close to the Sony BMG split told the Associated Press that the new deal was worth $1.5 billion to Bertelsmann when you factor in tax advantages.
"This move is consistent with our new growth strategy and will enable us to focus on our defined growth areas," Hartmut Ostrowski, Bertelsmann's Chief Executive, said in a statement. "Sony has been an excellent partner, and they are the right company to take this business to the next step and ensure that it realizes its full value and potential."
Once everything is approved, Sony Music Entertainment Inc. will include such labels as RCA, Epic, Columbia, Arista and Jive.
—The ARTISTdirect Staff