Sony Eyes Full Control of Music JV With Bertelsmann

Tokyo, July 29 (Jiji Press)–Sony Corp. is in talks with Germany’s Bertelsmann AG to buy the remaining stake in their fifty- fifty music software joint venture, Sony BMG Entertainment, for an estimated sum of over 100 billion yen, it was learned Tuesday.

Sony and Bertelsmann are aiming to reach a basic agreement in August, informed sources said.

The move reflects Sony’s efforts to strengthen the group’s content production capacity as the Japanese company seeks synergies between its software and hardware businesses, such as linking music and mobile phones.

Meanwhile, the deal will allow Bertelsmann to focus its resources on its publishing and broadcasting operations.

Sony BMG, based in New York, was set up in 2004 following the integration of the two companies’ music divisions.END

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