Bertelsmann, the parent company of the BMG half of Sony BMG, will take out a $5.74 billion bridge load to pay off a key investor rather than take the company public.
The 12-18 month loan will be paid off in part by the sale of the company's BMG Publishing unit. Song catalogs are in favor with investors and have been fetching high purchase prices in recent years. The move not only keeps Bertelsmann private it avoids potential turmoil in a the company's label partnership with Sony. Read the company press release here.
