| |
|
Send this page to a colleague! |
News Image
|
News Title: |
Bertelsmann, Sony to make music together |
| Published on: |
11/06/2003 |
| Published by: |
Austin Business Journal |
| Category: |
Companies |
| Description: |
Entertainment conglomerates Bertelsmann AG and Sony Corp. have agreed to merge their New York-based recorded music operations.
The deal would affect two major Sony acts from Central Texas -- the Dixie Chicks and Willie Nelson. Also under the Sony banner are two recordings based on the locally produced "Austin City Limits" music series -- "The Best of Austin City Limits II" and "The Best of Austin City Limits: Country Music's Finest Hour."
Sony BMG would be owned equally by Bertelsmann and Sony. The new company wouldn't include the companies' music publishing, distribution and manufacturing businesses. Sony BMG would focus on artist development, promotion, sales and marketing.
Financial details weren't disclosed.
The deal must be approved regulatory authorities in the United States, the European Union and other places.
"The recorded music industry is facing a global crisis evidenced by a massive decline in product sales, accompanied by rising costs and falling prices," according to a statement on Bertelsmann's Web site.
The merger "will allow us to support more artists and a larger number of releases than our companies would do otherwise, given our current course of streamlining and cutbacks in response to the declining market environment," according to the statement.
Rolf Schmidt-Holtz, chairman and CEO of BMG Entertainment, would be chairman of the new joint venture. Andrew Lack, chairman and CEO of Sony Music Entertainment Inc., would be CEO of Sony BMG.
Sony Music Entertainment is the world's second largest recording company. BMG, whose official name is Bertelsmann Music Group Inc., is the fifth largest.
The board of the new company would comprise an equal number of representatives from Germany-based Bertelsmann and Japan-based Sony [NYSE: SNE].
BMG's artists include Christina Aguilera, Alabama, Clint Black, Brooks & Dunn, the Dave Matthews Band and Britney Spears.
Sony's artists include Aerosmith, Harry Connick Jr., Bob Dylan, Gloria Estefan, Jennifer Lopez, John Mayer and Barbra Streisand. |
| Contact Info: |
www.Bertelsmann.com |
|
General Contact Information:
KHK Consulting LLC
20 Redbud Lane
Bakersville, NC 28705-8623
U.S.A.
+1 828 688 2109 (Tel.)
+1 828 688 2110 (Fax)
Info@KHKconsulting.com
|
;)