To: 10K a day who wrote (92712 ) 1/31/2000 10:51:00 PM From: Glenn D. Rudolph Respond to of 164684
Top Financial News Mon, 31 Jan 2000, 10:45pm EST Sony, Bertelsmann Are Discussing Music Division Merger, Newspapers Report By Yoshifumi Takemoto (Adds Sony share price.) Tokyo, Feb. 1 (Bloomberg) -- Sony Corp., Japan's No. 2 home electronics maker, and Bertelsmann AG, the third-largest media group, are discussing a music merger that would create the world's largest music company, the New York Post and Hollywood Reporter said. Bertelsmann AG is under growing pressure to fatten its music collection after Time Warner Inc. linked with EMI Group Plc to form the world's biggest recorded-music company. A Bertelsmann spokeswoman declined to comment, the Post said. Sony officials also refused to discuss the report. ``Sony is not in a position to comment on any stories based on speculation,' said Tatsuyuki Sonoda, manager of Sony's Investor Relations department in Tokyo. Sony Corp., whose music division's sales fell 9.2 percent to 214 billion yen ($1.9 billion) in the three months to December, has been hurt by the yen's strength, higher talent development costs and the flagging performance of its Japanese unit, Sony Music Entertainment (Japan) Inc. Reports of talks between Sony and Bertelsmann underscore changes sweeping the music industry worldwide. The Time Warner-EMI agreement to merge their music units into a joint venture called Warner EMI Music trims the number of major distributors to just four from six in less than two years. It also highlights how Bertelsmann Music Group is the smallest of the four, trailing Seagram Co.'s Universal Music and Sony Corp. Sony's music sales, especially in Europe, Latin America and Japan, were hurt by the lack of hit songs in the just-finished quarter, Sony said last week. The company's artists include Latino pop idol Ricky Martin and Japanese rock group L'Arc en Ciel. Sony's best sellers in the three months to December included Celine Dion's ``All the Way - A Decade of Song,' Mariah Carey's ``Rainbow' and Will Smith's ``Willennium.' Sony shares rose as much as 2 percent to 27,500.