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Will Sony Buy The Other Half Of Sony BMG?

Sonybmg_24Hits and others are speculating that Sony is the most like buyer for the BMG half of Sony BMG that is up for sale "…which given the cash savings and consolidation that has already taken place, could turn out to be a bargain."

"Can Sony afford to acquire the other half of the company, which would carry a price tag of betweenBertelsmann_logo_01_1  $2-2.5 billion?  Could they use their leverage to prevent Bertelsmann from selling? Most observers feel Sony has its hands full trying to right their core business of electronics, and that the recorded music business is still in a slow-to-no-growth state…Still, most insiders feel Sony’s in the best position to make this deal, and that they have Bertelsmann over a barrel. " There must also be a tremendous motivation on the Sony side not to have another unknown partner replacing Bertelsmann and trying to ring additional cost saving out of an already streamlined company just to pay for the acquisition. 

If both companies knew about this possible sale why then was Andy Lack moved down the ladder and a BMG insider placed above him?  "Those in the know say any proposed deal would be much easier to accomplish without Lack in the driver’s seat, even if the Wall Street Journal suggests the situation could pave the way for his return to power."

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1 Comment

  1. The whole idea that Sony can leverage the synergy of content, distribution, and music player have failed.
    Sony is non existence in digital distribution and digital music player. They can’t write software and the geeks hate Sony after that DRM debacle. Apple and Microsoft will make sure Sony will not advance in digital music too.

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