Bertelsmann Realigns BMG for the Music Rights Business

- BMG takes over selected catalog rights from Sony BMG

NEW YORK and GUTERSLOH, Germany, Aug. 5 /PRNewswire/ -- The international
media company Bertelsmann is gearing the business of its Bertelsmann Music
Group (BMG) towards music rights management. The realignment is connected with
the sale of Bertelsmann's stake in the Sony BMG Music Entertainment joint
venture to the Sony Corporation of America. Bertelsmann is taking over
selected European catalogs of music rights from Sony BMG as part of the
transaction. They comprise the works of more than 200 artists. The catalogs
will continue to be distributed by Sony Music.
Taking over these catalogs is an important step towards the planned
establishment of a licensing and management platform for exploiting and
marketing music rights under the BMG brand. The designated managing director
of BMG, based in Berlin, is Hartwig Masuch, an experienced music industry
executive, who most recently advised Bertelsmann in the negotiations with
Sony. Maximilian Dressendorfer, Vice President BMG, will also be part of the
management team.
Bertelsmann's Chief Financial Officer Thomas Rabe, who is responsible for
the music division on the group's Executive Board, stated: "The many new
distribution paths are causing an increase in the demand for music use rights.
In view of this fact, we believe that building a business for the management
and exploitation of such rights in Europe is an attractive proposition. We
want to take advantage of our opportunities and position ourselves with the
strong, well-established BMG brand and a management that is highly regarded in
the market."
Designated managing director Hartwig Masuch added: "I am confident that,
by building this new business under the historic BMG brand, we will continue
to be successful in shaping the music industry. The activities of
Bertelsmann's various divisions, coupled with the realignment of BMG, provide
countless opportunities for us to put together attractive service packages for
creatives and rights owners. Our top priority will be to assert the rights
owners' claims efficiently and protect their interests against a backdrop of
increasingly complex use and distribution models."
Consummation of the transaction remains subject to a number of conditions,
including approvals of regulatory authorities in certain jurisdictions. JP
Morgan acted as sole financial advisor to Bertelsmann on the sale of the Sony
BMG stake and the new music venture.
About Bertelsmann AG
Bertelsmann is an international media company encompassing television (RTL
Group), book publishing (Random House), magazine publishing (Gruner + Jahr),
music (BMG), media services (Arvato), and media clubs (Direct Group) in more
than 50 countries. Bertelsmann's claim is to inspire people around the world
with first-class media and communications offerings - entertainment,
information and services - and occupy leading positions in its respective
markets. The foundation of Bertelsmann's success is a corporate culture based
on partnership, entrepreneurial spirit, creativity, and corporate
responsibility. The company strives to bring creative new ideas to market and
create value.
For further questions, please contact:

Andreas Grafemeyer
Senior Vice President Media Relations
Phone: +49 - 52 41 / 80 24 66
andreas.grafemeyer@bertelsmann.de

Tobias Riepe
Vice President Media Relations
Phone: +49 - 52 41 / 80 77 69
tobias.riepe@bertelsmann.de

SOURCE Bertelsmann Media Worldwide

Andreas Grafemeyer, Senior Vice President Media Relations, +49-52 41 / 80 24
66, andreas.grafemeyer@bertelsmann.de, or Tobias Riepe, Vice President Media
Relations, +49-52 41 / 80 77 69, tobias.riepe@bertelsmann.de, both of
Bertelsmann