Thread: Sony and BMG to merge

Posts: 4

Post by zeus November 6, 2003 (1 of 4)
In case you missed this elsewhere:

"Sony Music and BMG took the lead in the ailing music industry's race to consolidate on Thursday, signing a 50-50 joint venture pact to create a record firm rivaling Universal Music as the industry leader. BMG's parent, German media giant Bertelsmann, said its music unit would tie up with Sony Music, linking the world's fifth- and second-largest record companies in a venture to be called Sony BMG."

More here:

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=3770775

Post by Dinko November 6, 2003 (2 of 4)
Could be interesting, but...

I don't get it!

- Yesterday Sony says it wants control over any merged company, now it takes a 50-50 split.
- Sony is the second music company, how come it gets a 50% share when BMG is smaller and gets the same share? Shouldn't the larger partner get a larger chunk of the merged conglomerate?

On the positive side, this brings part of the old RCA and Sony catalogs back together. So now most Eugene Ormandy recordings will be found under the same roof. :D

Post by Dinko November 6, 2003 (3 of 4)
Sony Japan not part of the deal. Weird.

From the Wall Street Journal:
"Under terms of the deal, each side will own 50% of the new venture, which will be called Sony-BMG. Seats on the board of the new entity will be evenly divided between executives from both companies.
Sony Music chief Andrew Lack will become chief executive, while BMG Chairman Rolf Schmidt-Holtz will be nonexecutive chairman. The new venture will assume $100 million (87.4 million) of Sony debt and excludes music publishing and Sony Japan."

Post by Johnno January 1, 2004 (4 of 4)
Do you think that means that we might see Reiner, Munch, Ormandy and others artists on SACD?

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