Report: Bertelsmann Wants Back In Publishing Business
September 28, 2007 at 5:38 AM (PT)
BERTELSMANN AG will set up a music publishing business, one year after the GERMAN media company sold its BMG MUSIC PUBLISHING unit to UNIVERSAL MUSIC GROUP, FINANCIAL TIMES/DEUTSCHLAND said, citing people familiar with the plans.
The appeal of music publishing to BERTELSMANN managers is that it generates a more stable revenue stream than music recording, the newspaper said.
BMG MUSIC PUBLISHING was sold primarily to reduce debt, the newspaper said.
BERTELSMANN will not be able to start operations at the new unit before 2009 as it agreed with UNIVERSAL to stay out of the business until that time as part of the sale of BMG MUSIC PUBLISHING.
BERTELSMANN aims for the new business to generate about EU150 million in annual sales in five years, the paper said, citing unnamed sources.