The Bertlesmann Group has sold its 50% stake in Sony BMG to Sony.
The merger of the two record industry giants happened four years ago but has been well documented as a very unhappy marriage.Sony has artists like Bruce Springsteen, Beyonce and Bob Dylan. BMG had Justin Timberlake, Britney Spears and Elvis Presley.
An exact figure on the sale has not been disclosed but industry speculation puts the 50% value at somewhere between $600 million and $900 million. Bertlesmann originally wanted between $1.2 billion but the settlement now values the entire company at that figure.
That has to make Terra Firma very comfortable today. The company bought EMI for around $4.7 million in 2007 and has been struggling for market share ever since. Under Terra Firma, EMI has lost the Rolling Stones, Paul McCartney and Radiohead as well as the labels Ministry of Sound and most recently, John Watson`s Eleven Records.
A valuation of $1.2 billion for Sony BMG would bring the total value of EMI down to well under $1 billion.
While Sony is in a healthy position with both catalogue and market share, EMI is struggling with a 20 year low. Rumours of the sale of EMI by Terra Firma are again circulating with Warner Music expected to be the buyer. Warner has gone to the altar twice so far with EMI but was jilted at the last moment both times.
With Terra Firma now owing more than EMI is worth, the next trip to the altar is expected to end with a wedding waltz. Radiohead just won`t be the band performing it.
