p2pnet - rss feed: Sony scarfes up BMG
p2pnet news view | Music:- Sony BMG, a member of the Big 4 organised music cartel, has just swallowed BMG.
It, “took full control of the music company behind Elvis Presley and Oasis today, buying out its partner Bertelsmann in a deal valuing the world’s second largest music company at $2.4 billion (£1.2 billion),” says Times Online, going on:
“The sale price is towards the bottom of the range that Bertelsmann hoped for, although the poor state of the recorded music business and the German group’s desire to exit the industry put pressure on the price.
“Bertelsmann had hoped for $1.5 billion but ended up receiving $1.2 billion in cash.”
The name remains the same, apparently, and Rolf Schmidt-Holz will remain Sony BMG’s CEO, “as he has a contract that is not thought to expire until 2009,” says the story.
What then? Sony, “may wish to appoint its own managers in a business that has had a turbulent history”.
Sony boss Howard Stringer says the acquisition will allow the company 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”.
Will it now start treating the people upon whom it depends as reasonable people instead of criminals and thieves?
Don’t hold your breath.
Last year, a a European private equity firm run by Guy Hands bought Britain’s EMI for £2.4 billion ($4.7 billion).
.
.Stumble It!
Times Online -Sony takes control of Bertelsmann stake for $1.2bn, August 5, 2008
private equity firm - EMI sold for $4.7 billion, May 21, 2007
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August 5th, 2008 at 4:42 pm
“Bertelsmann had hoped for $1.5 billion but ended up receiving $1.2 billion in cash.”
How much do you want to bet they’ll blame illegal downloaders for this?
August 5th, 2008 at 6:50 pm
Poor management of their depreciating assets are their real problem, if they had looked long and gave a decent download service at a reasonably cheap price I think they would have been swamped with the billions in spare change held by those who like music, instead we saw old style management with their old ideas of “threaten to sue” and “scare propaganda”. both have failed miserably and generous profits have been lost, will sony be able to take on board the route to riches or not.