Report: Bertelsmann Wants $1.5B For Sony BMG Stake
June 11, 2008 at 12:31 PM (PT)
An unnamed source tells FT DEUTSCHLAND the GERMAN media group wants to sell its 50% stake in SONY BMG to its JAPANESE partner for $1.5 billion within four to six weeks, reports PAIDCONTENT.ORG. It may only get $1.2 or $1.3 billion, the source said. YESTERDAY, FRANKFURTER ALLGEMEINE ZEITUNG had another bite at a rumor that has existed all year, but added little. But FTD says talks are "well advanced."
BERTELSMANN’s BMG revenue from SONY BMG fell 27% to $1.5 billion in 2007, partly from the sale of the company’s publishing unit. But the core was weak, too - a 40% hike in digital music sales couldn’t offset a 17% decline in physical sales. Losses slimmed dramatically in Q1 08 after BERTELSMANN settled all its litigation payouts to rival labels annoyed by its earlier stake in NAPSTER.