Bertelsmann Considers Music Publishing Return

Bertelsmann Considers Music Publishing Return

Bertelsmann is now considering a reentry into music publishing, despite the recent sale of its BMG Music Publishing unit. The German media giant offloaded the division as part of a larger plan to buyout minority ownership shares and avoid a public offering. But according to a recent report in the Financial Times Deutschland, Bertelsmann would have preferred to retain the property, and is actively considering a publishing reinvestment.


Music publishing offers a relatively stable revenue stream, a virtue recognized by other major label groups. That stands in stark contrast to the rather rocky recording sector - and Bertelsmann has experienced its share of ups-and-downs through its joint venture label partnership, Sony BMG. Meanwhile, Bertelsmann is not permitted to establish a publishing group until 2009 based on various non-compete clauses. That feels like an eternity in the current market, though Bertelsmann may have some interesting acquisition options by the end of next year.

Bron: http://www.digitalmusicnews.com/stories/100107bert/view