Bertelsmann exiting music biz?

Financial Times is reporting that Bertelsmann is looking to get out of the music biz (and who can blame them? I commented on the poor prospects for the industry in this TPM Update).

Four people familiar with the company's plans said a sale was under preparation, though still at an early stage. The group is examining the sale of its 50 per cent 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.

Together, the music companies reported revenues of €2.1bn last year, down 16.5 per cent as CD sales fell. Operating earnings before interest and tax were up from €162m to €177m. Bertelsmann declined to comment.

The prospect of the third largest music publishing company being sold is likely to prompt keen bidding. Vivendi Universal, owner of the largest recorded music company, wants to build up its music publishing assets.