BREAKING NEWS & COMMENTARY UPDATED:
UPDATE: The LA Times is reporting that Tim Bowan, who now heads most of Sony BMG's non-US operations will be named Chief Operating Officer. Bowan who has worked at both Sony and BMG is an associate of new Sony BMG topper Rolf Schmidt-Holtz who hired him even before the company's merger.
They can spin it any way that they want, but according to a corporate press release issued this morning, the rumors are true. Andy Lack's day-to-day powers at Sony BMG will be significantly reduced "effective immediately" and Rolf Schmidt-Holtz formerly Chairman of the Board has been named Chief Executive Officer. Lack, who had been CEO, assumes the position of Chairman of the Board . The company will continue to be governed by a six member Board consisting of six representatives of Bertelsmann and Sony.
In his new position Schmidt-Holtz will have overall management responsibility for the company and be based in New York. Lack will lead Sony BMG's public policy and industry initiatives, and assume operating responsibility and oversight for the theatrical film business of Sony BMG . The senior management team will also include the Chief Financial Officer, Kevin Kelleher, and a Chief Operating Officer to be appointed shortly.
Lack has been a controversial industry figure often because of his "outsider" status having come from the TV and film side of the entertainment business. And recent moves like re-signing Bruce Springsteen for millions of dollars and a slow response to the recent Sony rookit controversy seem to have sealed Lack's fate within the organization. Ironically it was Andy Lack who orchestrated much of the deal that joined these two music giants into one unwieldy company.
READ THE FULL PRESS RELEASE HERE. READ THE LA TIMES BOWEN STORY HERE.
