The music company, to be called Sony Music Entertainment, will become a wholly owned subsidiary of Sony Corporation of America. Sony and Bertelsmann originally created the Sony BMG joint venture in August 2004.
“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,” said Sir Howard Stringer, Chairman and CEO, Sony Corporation.
“Over the past four years, Sony BMG has undertaken a very successful restructuring, streamlined operations and developed innovative digital partnerships that ensure it will continue to be a leader in the creation and distribution of music worldwide. It is an organization rich in talent, ideas and enthusiasm, and is a strong fit with our overall business strategy.”
“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 Hartmut Ostrowski, Chairman and CEO of Bertelsmann.
As part of the transaction, the parties have also agreed to continue to share the company’s manufacturing and distribution requirements. In addition, Bertelsmann will be taking over selected European music catalogue assets from Sony BMG.