Sony Corp. has reached a deal to acquire Bertelsmann’s half of music giant Sony BMG for $900 million.
The major label — the world’s second-biggest recorded-music operation — will be renamed Sony Music Entertainment Inc. following completion of the transaction. It will include Arista Records, Columbia Records, Epic Records, J Records, Jive Records, RCA Records and Zomba, and will be home to acts such as Alicia Keys, Bruce Springsteen, Justin Timberlake and Usher.
As reported by The Post in June, Bertelsmann and Sony execs had been working since the early summer to unwind the joint venture, first formed in 2004.
Sources said recently installed Bertelsmann CEO Hartmut Ostrowski wanted to turn the page on the struggling music business sooner rather than later as part of a fresh start for the German media giant.
Under terms of the deal, Sony said it will pay Bertelsmann $600 million in cash, plus another $300 million for its share of the cash on Sony BMG’s balance sheet.
In addition, Bertelsmann will assume control of selected European music catalog assets from the joint venture’s catalog, worth roughly $20 million, or less than 1 percent of Sony BMG’s 2007 revenues.
The two companies will also continue to direct manufacturing and distribution services between Sony’s manufacturing subsidiary, Sony DADC, and Bertelsmann’s Arvato Digital Services GmbH for the next six years.