MUMBAI: German based media czars Bertelsmann is in talks to sell its 50 percent stake in joint venture with Sony BMG to Sony Corporation. However, Bertelsmann and Sony have not yet finalized the price tag for their deal.
Both companies have equal rights of the music publishing firm since 2004. According to a source in a report, Sony has an option to buy the stake should Bertelsmann decide to sell it.
The Frankfurter Allgemeine Zeitung newspaper explained that Bertelsmann boss Hartmut Ostrowski has decided to slip out of the music business owing to falling sales caused by Internet downloads. The fallout started couple of years ago when Bertelsmann sold its rights to BMG Music Publishing’s catalogue to Vivendi.Bertelsmann is also active in television with the RTL group, publishing, with Gruner + Jahr and Random House, services, book and record clubs. It is known that both Bertelsmann and Sony declined to comment on the venture.
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Sony BMG is one of the biggest music companies worldwide, and currently has contracts with singers including Alicia Keys, Celine Dion and Britney Spears.
