• FT.com / MSNBC, Monday, March 27, 2006 11:18 AM

The Financial Times is reporting that Bertelsmann, Europe's largest media conglomerate, is preparing to sell off its music division, possibly setting off a worldwide realignment within the highly competitive music industry.  "People familiar with the company's plans said a sale was under preparation, though still at an early stage," according to FT.com. "The group is examining the sale of its 50 percent stake in Sony BMG and of its wholly-owned BMG Music Publishing division, which has the rights to more than 1m songs from artists including Christina Aguilera, Keane and Coldplay."  Vivendi Universal, among others, would be likely bidders for Bertelsmann's music assets.  If Sony does not decide to buy out Bertelsmann's stake in Sony BMG--as is Sony's right according to the companies' joint deal--then Bertelsmann would need to find a suitor willing to work in partnership with Sony. FT.com says analysts believe Sony will not make additional investments in its entertainment divisions while it is focusing on fixing its electronics unit.

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