Music Company to Become Wholly Owned Subsidiary of Sony Corporation of
America
NEW YORK, Aug. 5 /PRNewswire/ -- The international media and
entertainment companies Sony Corporation and Bertelsmann AG today announced
that Sony has agreed to acquire Bertelsmann's 50% stake in Sony BMG. The
music company, to be called Sony Music Entertainment Inc. (SMEI), will
become a wholly owned subsidiary of Sony Corporation of America. Sony and
Bertelsmann AG 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," stated Hartmut
Ostrowski, Chairman and CEO of Bertelsmann AG. "This move is consistent
with our new growth strategy and will enable us to focus on our defined
growth areas. Sony has been an excellent partner, and they are the right
company to take this business to the next step and ensure that it realizes
its full value and potential. We look forward to witnessing Sony Music
Entertainment's exciting future under Sony's ownership."
Once the transaction is completed, SMEI will be comprised of premier
music labels such as: Arista Records, Columbia Records, Epic Records, J
Records, Jive Records, RCA Records, and Zomba. Key recording artists will
include Celine Dion, Alicia Keys, Yo-Yo Ma, Bruce Springsteen, Justin
Timberlake, Usher and Jay Chou.
As part of the transaction, the parties have also agreed to 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 GmbH ("Arvato"), by extending the
agreements with Arvato for additional terms of up to six years. In
addition, Bertelsmann will be taking over selected European music catalog
assets from Sony BMG. Consummation of the transaction remains subject to a
number of conditions, including approvals of regulatory authorities in
certain jurisdictions.
About Sony Corporation
Sony Corporation is a leading manufacturer of audio, video, game,
communications, key device and information technology products for the
consumer and professional markets. With its music, pictures, computer
entertainment and on-line businesses, Sony is uniquely positioned to be the
leading electronics and entertainment company in the world. Sony recorded
consolidated annual sales of approximately $88 billion for the fiscal year
ended March 31, 2008. Sony Global Web Site: http://www.sony.net /
About Bertelsmann AG
Bertelsmann is an international media company encompassing television
(RTL Group), book publishing (Random House), magazine publishing (Gruner +
Jahr), music (BMG), media services (Arvato), and media clubs (Direct Group)
in more than 50 countries. Bertelsmann's claim is to inspire people around
the world with first-class media and communications offerings --
entertainment, information and services -- and occupy leading positions in
its respective markets. The foundation of Bertelsmann's success is a
corporate culture based on partnership, entrepreneurial spirit, creativity,
and corporate responsibility. The company strives to bring creative new
ideas to market and create value.
SOURCE Sony Corporation
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Related links:
http://www.sony.net
CONTACT:
Lisa Gephardt, +1-212-833-6826,
Lisa_gephardt@sonyusa.com, or Mack Araki, +1-212-833-6821,
Mack_araki@sonyusa.com, both of Sony-New York; or Andreas
Grafemeyer, Senior Vice President Media Relations,
+49-5241-80-24-66, andreas.grafemeyer@bertelsmann.de, or Tobias
Riepe, Vice President Media Relations, +49-5241-80-77-69,
tobias.riepe@bertelsmann.de, both of Bertelsmann AG; or Kelly
Sullivan, Senior Managing Director of JFWBK, +1-212-895-8659,
ksullivan@joelefrank.com, for Bertelsmann AG-New York; or Angus
Maitland Executive Chairman of Maitland, +44-20-73-79-51-51,
amaitland@maitland.co.uk, for Bertelsmann AG-UK
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