8/05/2008

Breaking Up is Hard to Do (not quite)

Awww, and they were so cute together: SonyBMG are no more. Bertelsmann Music Group will sell its 50% stake in the company to Sony, and the new beast will be called Sony Music Entertainment. "Given the changes in the music market, a quick decision...would be better – for the company, artists, and employees alike," said Bertelsmann chairman and CEO Hartmut Ostrowski, in an open letter. The curent deal is supposedly setting back Sony to the tune of $1.5 billion.

The merging companies' original five-year business plan fell short by a year; the joint venture took off in 2004.

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