p2p news / p2pnet: Germany’s Bertelsmann, better known as BMG, is contemplating the sale of its half of Sony BMG, says the Times Online.

Cash generated by the sale, “could be used to buy out the minority shareholder Groupe Bruxelles Lambert (GBL),” which wants to float its 25 per cent stake.

“Bertelsmann is under pressure to decide how it will respond to a demand by GBL for a flotation,” says the story. “The German group has never been public and Liz Mohn, the company’s controlling shareholder, is sceptical of the capital markets.”

BMG ceo Gunter Thielen wouldn’t say how he would respond to GBL’s demand, and, “speculation has centred on whether the German group would offload its half of SonyBMG, which is worth an estimated €1.5 billion to €2 billion,” says the story adding:

“SonyBMG accounted for four fifths of revenue at Bertelsmann’s music division, with the rest coming from the German group’s wholly owned music publishing business.

“Profits at the music division increased 9.3 per cent last year to €177 million before restructuring charges and despite a 7.2 per cent decline in underlying revenues to €2.1 billion.”

SonyBMG is still trying to live down the disastrous publicity which sprang from its efforts to use its music CDs to plant DRM spyware on customers’ computers without their knowledge or permission.

Also See:
Times Online - Bertelsmann chief weighs up options over SonyBMG stake, March 23, 2006

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