Sony eyes a BMG buyout

Bertelsmann seeking $1.5 billion

Sony is looking to spend ¥100 billion ($931 million) on Bertelsmann’s 50% stake in Sony BMG Music Entertainment, according to a report in the Nikkei Business Daily newspaper.

Sony hopes to close the deal making the joint venture into a Sony subsid next month.

Bertelsmann has reportedly asked for as much as $2.5 billion for its stake, but the global credit crisis and slumps in the sales of recorded music have brought that number down. Most recently, Bertelsmann was reportedly seeking $1.5 billion.

Sony Music Entertainment and BMG merged in 2004, mirroring the merger of Universal and Polygram five years prior. Since the mergers, Universal Music Group has always had the top market share in the music biz, and Sony BMG has been the perennial No. 2.

In the past fiscal year, Sony BMG sales dropped 4% to $3.93 billion, while pre-tax profit grew 90% to $257 million.

More Scene

  • Demi MooreComedy Central's Roast of Bruce

    Demi Moore Appears as Surprise Guest at Bruce Willis' Comedy Central Roast

    Sony is looking to spend ¥100 billion ($931 million) on Bertelsmann’s 50% stake in Sony BMG Music Entertainment, according to a report in the Nikkei Business Daily newspaper. Sony hopes to close the deal making the joint venture into a Sony subsid next month. Bertelsmann has reportedly asked for as much as $2.5 billion for […]

  • Outfest Filmmakers Get Political, Issue Call

    Outfest Filmmakers Get Political, Issue Call to Action on Opening Night

    Sony is looking to spend ¥100 billion ($931 million) on Bertelsmann’s 50% stake in Sony BMG Music Entertainment, according to a report in the Nikkei Business Daily newspaper. Sony hopes to close the deal making the joint venture into a Sony subsid next month. Bertelsmann has reportedly asked for as much as $2.5 billion for […]

  • Bob Woodruff Foundation Acquires Veterans Org

    Bob Woodruff Foundation Acquires Veterans Org Got Your 6

    Sony is looking to spend ¥100 billion ($931 million) on Bertelsmann’s 50% stake in Sony BMG Music Entertainment, according to a report in the Nikkei Business Daily newspaper. Sony hopes to close the deal making the joint venture into a Sony subsid next month. Bertelsmann has reportedly asked for as much as $2.5 billion for […]

  • Shirel Kozak, Billy Crystal, Marina Zenovich,

    Billy Crystal, Filmmakers Remember Robin Williams at 'Come Inside My Mind' Premiere

    Sony is looking to spend ¥100 billion ($931 million) on Bertelsmann’s 50% stake in Sony BMG Music Entertainment, according to a report in the Nikkei Business Daily newspaper. Sony hopes to close the deal making the joint venture into a Sony subsid next month. Bertelsmann has reportedly asked for as much as $2.5 billion for […]

More From Our Brands

Access exclusive content