It’s the end of an era. The Associated Press is reporting that Bertelsmann AG will sell its 50-percent stake in music business Sony BMG to Sony Corp. in a $1.2 billion deal, the companies announced Tuesday. That gives Sony full ownership of the joint venture whose artists include Celine Dion, Bruce Springsteen, Justin Timberlake, Alicia Keys and Usher.
The new company will be called Sony Music Entertainment. “This move is consistent with our new growth strategy and will enable us to focus on our defined growth areas,” Bertelsmann CEO Hartmut Ostrowski said in a statement. “Sony has been an excellent partner, and they are the right company to take this business to the next step and ensure that it realizes its full value and potential.”
Sony continues to consolidate its portfolio as the only company that sells music players, cell phones, online music services, and is also a major music label that provides content for all of those things.