Bertelsmann, Sony finalise agreement to merge music operations

Описание: (12 Dec 2003)

November 6, 2003
1. Tilt down of Sony headquarters
2. Sign reading "Sony"
3. Three women smoking underneath Sony sign
4. Bertelsmann building in Times Square
5. Various of advertisement for Christina Aguilera on Bertelsmann building
6. Bertelsmann building
7. Sign reading "Bertelsmann media worldwide"
8. Bertelsmann flag
9. Entrance to Bertelsmann building

STORYLINE:

Beyonce and Christina Aguilera will be singing for the same label under a merger announced on Friday by Bertelsmann AG (BMG) and Sony Corporation, creating the world's second largest music company.

With the industry struggling with losses blamed on piracy, the companies announced nearly a month ago their intentions to merge number two Sony with number five Bertelsmann.

Universal Music Group, a part of Vivendi Universal SA, is currently the worlds' number one music company.

The new company, which merges the record labels and music production, is to be called Sony BMG and will be equally owned by Sony and Bertelsmann, the two said in a statement.

The statement said: "Sony and Bertelsmann share the vision that this merger is the basis for a company that will concentrate on the creative key business... Our music business plays a key role for Bertelsmann and we believe in its future."

No financial terms were released for the deal, which will not affect the individual music publishing businesses, the statement said.

Each company's CD and DVD productions, deliveries and Sony's Japanese music business also will be unaffected by the merger.

The deal is subject to approval from regulators in the United States and the European Union.

Andrew Lack, current chairman and chief executive of Sony Music Entertainment, has been named to head the new company and Rolf Schmidt-Holtz, the chairman and chief executive of BMG, is to serve as chairman of the board.

The merger will put some of music's biggest stars under a common corporate roof.

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