(
)
German media behemoth Bertelsmann is in advanced talks to buy out KKR’s majority stake in their joint music venture, BMG Rights, The Post has learned.
The partners have been talking for close to a year about KKR exiting the venture. The buyout shop has a 51 percent stake, while Bertelsmann holds 49 percent.
While a deal is “imminent,” the talks could still fall apart, sources cautioned. Price is at the crux of the negotiations.
“They are very close to something with KKR, and the relationship is amicable,” said a source. “They will exit at a good multiple.”
KKR has been a partner in BMG since 2009. Typically, the private-equity firm looks to exit its investments after four or five years.
A potential deal comes as BMG moves to become a greater force in the music business amid consolidation.
BMG started out as a music-publishing company focused on acquiring song catalogs such as Cherry Lane, Evergreen and Chrysalis.
More recently, however, BMG has made a play for bigger music assets and branched out into recorded music.
While it lost out to Warner Music in the bidding for UK record label Parlophone, BMG snapped up ’80s catalog Mute and heavy-metal label Sanctuary.
BMG is also in the mix for independent label Concord Music Group, which is on the block for around $125 million, sources said.
Traditionally, KKR has been more cautious than Bertelsmann when it comes to paying for acquisitions.
Insiders say Bertelsmann CEO Thomas Rabe has talked about wanting to buy back BMG Rights in recent weeks. Rabe is looking to digital media and international expansion to boost Bertelsmann’s growth rate.
Bertelsmann had explored bringing in another partner to replace KKR, including Korean consumer electronics giant Samsung.
Reps for both KKR and BMG declined comment. Germany’s Bertelsmann couldn’t be reached for comment by presstime.