Bertelsmann ponders its harmony with Sony

Bertelsmann, Europe’s biggest consumer media group, said that it would sell out of the music business if Sony, its joint-venture partner, was willing to offer a similar valuation to that paid by Guy Hands when he bought EMI for £2.1 billion last year. Thomas Rabe, the chief financial officer, said: “What we will do depends on price. Of course, the EMI price is a good price for a seller, but we would not be interested in selling if we were offered a figure based on the current valuation of Warner Music. The market is undervaluing music assets.” (Times Online, FMQB)

Bertelsmann keeps deal powder dry

Bertelsmann believes it can exploit its private status to buy assets from struggling private equity groups, but its new management admitted yesterday that it first needed to clean up underperforming corners of its portfolio. Net income plunged in 2007 from €2.46bn ($3.9bn) to €405m, owing to writedowns of its North American book and music clubs, the costs of settling litigation over the Napster digital music service and the absence of 2006’s gains from selling BMG Music Publishing. (Financial Times)