p2pnet - rss feed: ‘Devastated’ Sony coughs up $1.2 billion
p2pnet news view | Music:- You know how those 12-year-old “massive illegal online distributors” of copyrighted ‘product’ are “devastating” Vivendi Universal, EMI, Warner Music and Sony BMG?
It doesn’t seem to have seriously affected the Sony half of the Sony BMG partnership.
It recently bought out Bertelsmann (BMG) in a deal wortht $2.4 billion (£1.2 billion), said p2pnet.
“Bertelsmann had hoped for $1.5 billion but ended up receiving $1.2 billion in cash,” said Times Online.
Never mind, though, because, “Sony BMG will initially pay Bertelsmann about $600 million in cash,” says Variety, going on:
“Sony Corp. of America will then purchase the remaining interest for about $600 million. As a result, Bertelsmann will receive approximately $900 million in value for its 50% stake plus $300 million of its share of cash on Sony BMG’s balance sheet. Sony views this arrangement as a net cash cost of about $600 million as it does not consolidate Sony BMG’s cash.”
It adds:
“Bertelsmann, which sold its music publishing unit, BMG Songs, to Universal two years ago, will keep a toehold in the European music marketplace. It takes over a limited number of music catalog assets from Sony BMG in Germany, the U.K., France and Italy.
“Bertelsmann chairman-CEO Hartmut Ostrowski told employees in a memo that these assets ‘will form the basis for re-entry into the music rights business’.
“The parties will continue to share the company’s manufacturing and distribution requirements between Sony’s manufacturing subsid, Sony DADC, and Bertelsmann’s services company, Arvato Digital Services, by extending agreements with Arvato for up to six years.”
It all looks so, well, clean and tidy, doesn’t it?
But it all hangs on you and I —- the people upon whom Sony BMG, Sony, BMG and the other corporate music companies depend. But we’re being called “criminals” and “thieves” as the labels try to use legal systems around the world to sue us into toeing the corporate line as compliant cash cow consumers.
Do you really really want that Big 4 album?
.
.Stumble It!
p2pnet - Sony scarfes up BMG, August 5, 2008
Times Online -Sony takes control of Bertelsmann stake for $1.2bn, August 5, 2008
Variety -Sony, Bertelsmann agree BMG buyout, August 5, 2008
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August 8th, 2008 at 1:20 am
I’ve a question. Does this mean that it’s now just a Big 3 group? A triopoly?
August 10th, 2008 at 7:15 am
Apparently theres a new concept called “freedom of choice” , if you dont want or like it - dont buy it if you dont want to support them , of course you could always steal it ………….but then darn you , youve made them right in calling you a criminal ….damn damn and thrice damn
. My response to this whole article , who gives a toss ?