Music business buy-out
March 1, 2013Bertelsmann, which already owned 49 percent of BMG, brought the music rights company under its control by acquiring the 51-percent stake held by US-based private equity firm KKR.
The two sides didn't disclose a sum for the deal, but the Financial Times reported last week that the buy-out would cost Bertelsmann an estimated 500 million euros ($654 million).
BMG was founded in 2008 and is known as BMG Chrysalis in a number of countries, including Britain and the United States. The firm owns the publishing rights to more than a million music titles, including works by artists such as Duran Duran, Gossip and Johnny Cash. In addition, BMG has so-called master rights to songs by Brian Ferry, Nena and Anastacia, which include both rights to composition and recording.
"This is a great day for Bertelsmann. We are bringing the music home to our group," Bertelsmann Chief Executive Thomas Rabe said after announcing the deal Friday. Rabe described KKR as a good partner, adding, however, that full ownership of BMG was an important step in Bertelsmann's growth strategy.
The buy-out is still subject to approval by EU regulators. But Bertelsmann said it hoped the procedure could be closed within the first half of 2013.
uhe/msh (Reuters, AFP, dpa)