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Bertelsmann Sells Stake in Sony BMG |
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Written by Mike Stahl
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Tuesday, 05 August 2008 |
Sony announced on Tuesday that it has agreed to by Bertelsmann's 50% stake in their four-year-old major record label joint venture Sony BMG, in a deal valued at $1.2 billion. "After a careful and thorough review, we made the strategic decision to sell our investment in this joint venture to Sony, a step that we believe will benefit the stakeholders of both our companies," said Bertelsmann chairman and CEO Hartmut Ostrowski.
"This move is consistent with our new growth strategy and will enable us to focus on our defined growth areas."
The company will now be called Sony Music Entertainment, and become a subsidiary of Sony Corporation of America.
Under the agreement, the companies will continue to share the company's manufacturing and distribution requirements between Sony's manufacturing subsidiary, Sony DADC, and Bertelsmann's services company, Arvato Digital Services.
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