Bertelsmann Bids Goodbye to Sony After Four Years

Sony and Bertelsmann said Tuesday that they would unravel their joint venture in music, ending a four-year partnership that has generated more dissonance than harmony.

Sony, based in Japan, will buy Bertelsmann’s 50 percent stake in the venture, Sony BMG Music Entertainment, for $900 million — substantially less than Bertelsmann, based in Germany, hoped it would command.

Behind the long-anticipated deal are two sharply divergent views of the future of recorded music.

For Sony, the acquisition represents a

gamble that, after years of upheaval amid the emergence of digital technology, the music industry will regain its footing. Sony BMG’s revenue had continued to erode, though its profit had improved lately, mostly considering of rigorous cost-cutting.

For Bertelsmann, the deal represents a retrenchment from traditional media as it builds up its less-glamorous service businesses. The company will retain rights to 200 European artists, giving it a toehold in a field it once […]

Orginal post by Top Tech News

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