By: Spacelab Research Stuff
You know, if they just went through one of those $99 divorce deals, they could have saved themselves so much money. Sony and BMG (Bertelsmann AG ) have decided to end the relationship that was formerly titled Sony BMG, a major force in the music industry.
Instead, Sony will pay $1.2 billion for Bertelsmann's 50 percent stake. This puts in effect a name change to Sony Music Entertainment Inc. (SMEI), and will include labels Columbia, Arista, Epic, J Records, Jive, RCA and Zomba. They'll be the world's second largest label.
"We look forward to witnessing Sony Music Entertainment's exciting future under Sony's ownership," said Hartmut Ostrowski, Chairman and CEO of Bertelsmann AG. Sure Hartmut, I'll bet you'll be tuning in everday to see what the haps are.
Bertelsmann will depart with some lovely parting gifts: the European contingent of Sony BMG. There's no word on visitation rights for any of the bands, though.
So Sony considers the market downturn to be "an opportunity." It'll be interesting to see how this plays out for Sony, will it sink or swim their music division? Can they outlast the (potential) worldwide recession that's coming to see a better day? Time will tell.