Bertelsmann Posts First Net Loss In Decades
March 24, 2010 at 4:31 AM (PT)
BERTELSMANN AG, EUROPE's largest media company, posted its first net loss for decades, reports THE WALL STREET JOURNAL, claiming "slumping advertising markets and higher charges, but it expects a return to stability in 2010 and a shift in focus from cash conservation to growth."
The company posted a net loss of $82 million in 2009 after a net profit of $142 million in 2008. BERTELSMANN hasn't posted a loss for three decades.
BERTELSMANN, the former partner in RCA RECORDS has recently been linked to an effort to acquire EMI PUBLISHIG (NET NEWS 3/17).
THE JOURNAL confirms EMI has held preliminary talks to license its music in NORTH AMERICA to rival record labels as its owner, TERRA FIRMA seeks to avoid debt default that could put the group in the hands of lender CITIGROUP.
EMI has also reportedly been shopping a five-year licensing deal of its catalog to rival music companies (NET NEWS 3/22).