The German media company Bertelsmann is considering escaping the flagging music sales industry by selling its 50 percent share in Sony/BMG to Sony. Apparently, no other parties are interested. Sony’s board is scheduled to meet July 29th to decide whether to buy out its partner of four years, becoming the sole owner of the major label.
According to Drew Lipsher, a partner at the venture capital firm Greycroft Partners (via Yahoo/Billboard), the label could become more nimble if Sony becomes the sole owner. “By controlling the whole show, they stand a chance,”he said. “A single parent with a single perspective is better-positioned to make far more aggressive and, especially over the short term, unpopular decisions.”
Bertelsmann had apparently been considering selling its share of Sony/BMG to Sony for $2.8 billion, but considering the economy and an increasingly rough climate for labels, their asking price is rumored to have dropped to $1.5 billion.
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