Sony Music and Bertelsmann Music Group (BMG) merged Monday creating the world’s largest music company in terms of market share.
The European Commission approved the deal without imposing any conditions, ruling that the merger would not harm the international music market and that the merged companies combined marketing muscle did not represent an unfair monopoly.
The new company, appropriately christened Sony BMG, brings together such BMG acts as Britney Spears, Usher, Dido and Avril Lavigne with Sony stars including Beyonce, Shakira and Celine Dion. The merger will boast combined sales of more than $8 billion — about 25% of the world’s music market.
The board of directors of the new company will comprise members of both Sony and BMG including Bertelsmann chairman and chief executive Gunter Thielen and Sony Corporation of America chairman Howard Stringer. Other employees won’t fare as well however, up to 2,000 jobs or about 25% of Sony and BMG’s combined work force will be cut. Reorganization will begin after U.S. regulatory approval of the deal, which is expected to happen next week.
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