FTC OKS SONY BMG

Bertelsmann AG and Sony Corp. won U.S. approval to merge their music businesses and create a company that will control approximately a quarter of the world's record sales.

The U.S. Federal Trade Commission, following a July 20 decision by the European Union to clear the transaction, approved the formation of Sony BMG, a joint music
venture whose market share will almost equal that of current leader Universal Music Group (see hitsdailydouble.com, July 19).

According to the International Federation of the Phonographic Industry, Sony Music and BMG last year had a combined market share of 25.1% worldwide, which doesn't include Sony Music's Japan sales.

The EU approved the combination without seeking concessions. The Brussels-based European competition authorities warned they would ``very carefully scrutinize'' any further consolidation of the industry.

Sony Music released a statement which read: "Now with regulatory approvals behind us we look forward to establishing a dynamic new company that will be deeply dedicated to serving the needs of its artists, while at the same time enriching the lives of music lovers around the world."

BMG offered the following remarks: "We are pleased that both the European Commission and now the Federal Trade Commission have cleared our merger with Sony Music Entertainment. We thank both bodies for their diligent review. We now look forward to creating a global recorded music company comprising many of the world's most successful artists as well as a vast catalog of recordings. The company will be dedicated to developing and supporting an array of international as well as national artists."

We can't wait.

Now, industry attention turns to EMI and Warner Music Group, who have twice within the last three years tried to get together. WMG was bought earlier this year by an investor group led by Edgar Bronfman Jr.