Posted Aug 6, 2008 by DaveB :: 0 comments

Sony Buys Out BMG

Sony has agreed to buy out Bertelsmann’s 50% stake in their Sony BMG joint music venture for a reported $1.2 billion (or nearly £614 million) deal.

The company which will be now owned solely by Sony will be renamed Sony Music Entertainment INC (SMEI) and will become a subsidiary wholly owned by the Sony Corporation of America.

As part of the agreement, Bertelsmann is taking over selected European catalogues of music rights from Sony BMG. The catalogues, which include the works of more than 200 artists, will continue to be distributed by Sony Music under their new name.

The buyout makes SMEI, the world’s second largest music company after Universal. Some of the acts on their roster will include Springsteen, Timberlake and Alicia Keys.

The company’s label roster boasts an impressive list with Arista, Columbia, Epic, J Records and RCA all under the SMEI banner.

“Music has been a vital and vibrant part of Sony’s culture for over twenty years. This acquisition will allow us to achieve a deeper and more robust integration between the wide-ranging global assets of the music company and Sony’s products, operating companies and affiliates. It enables us to offer a total entertainment experience to consumers,” says Sony Corporation chairman and CEO Sir Howard Stringer.

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