Sony seeks to harmonize music, electronics

Now that Sony Corp. and Bertelsmann AG have broken off their troubled relationship, known as Sony BMG, the Japanese company hopes to harmonize its consumer electronics and its music, a duo that was badly out of sync. The music business combination four years ago made Sony BMG the world's No. 2 record label, generating savings and pre-empting other industry consolidation. But the venture's cost-cutting didn't keep pace with falling CD sales, and the two companies' digital strategies didn't jibe. So they called it quits, and Sony bought out its partner for $900 million in a deal that closed Oct. 1. Selling its 50 percent stake will let Bertelsmann refocus on its growing TV, magazines and book publishing businesses. And full ownership of the music venture gives Sony control of a medium it can use to drive electronics sales, just... [read full story]                    

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