OLD SCHOOL NEWS: BMG Explores Sale To Sony But Prospect Dim

This is the week that Bertelsmann, the privately held parent corp of the BMG half of Sony BMG must decide to take a loan for $5 billion to pay off a large shareholder or to take the company public. According to the New York Times one way to raise cash is for Bertelsmann is to alter or sell it’s half of Sony-BMG.

Talks are being held with Sony but executives close to the negotiations told the Times that an agreement is not close. One reason is that Bertlesmann does not want to appear pressured into a lower than deserved sale price.  Another may be that Sony’s shaky earnings may not make this large a purchase attractive or financing easy.