Sony BMG Seeks Shareholder Deal
October 8, 2007 at 5:30 AM (PT)
SONY BMG has proposed a compromise to its two shareholders that could allow the recorded music group to get into the more reliable business of music publishing, which generates revenue every time a song is played, reports THE FINANCIAL TIMES. SONY, which owns half of the company, has been building up SONY ATV, its publishing joint venture with MICHAEL JACKSON, funding acquisitions of prominent catalogues of music under MARTY BANDIER, its new chief executive.
Concern that SONY BMG and SONY ATV could find themselves competing in auctions for collections of copyrights appeared likely to frustrate SONY BMG’s hopes of stabilizing its recording business by building the steady cash flows offered by music publishing.
SONY-BMG CEO ROLF SCHMIDT-HOLTZ told the FINANCIAL TIMES SONY and BERTELSMANN, the joint venture’s other partner, were "really close" to agreeing a proposal to allow him to pursue publishing revenues. "The shareholders are talking at the moment and I’m confident we will find a solution," he said.