German media giant Bertelsmann AG wants out of the music business?

BY SDH The word around Germany is that Bertelsmann AG is looking to exit the music business via a sale of its 50% stake in Sony BMG something we said they should seriously look into doing. If this is indeed in the works then we have to applaud new Bertelsmann CEO Hart Ostrowski for making what could be his first right move since taking office. Bertelsmann is the only major media company still attached to a major music group. Time Warner saw the writing on the wall some years back and sold its music division (Warner Music Group) to a private equity firm who took the company public. The company's stock has since been struggling to survive. The music industry is faced with numerous problems that will only bring down a big media parent company when earnings report time comes around. Bertelsmann should be able to pocket a nice chunk of cash from a sale of its 50% stake in Sony BMG and perhaps invest their take in building up their internet and digital media business. Well there goes any shot at seeing Hart Ostrowski escorting Sony BMG artist Beyonce to a major music event. We just hope they don't sell their 50% stake and then a year later announce plans to invest millions into launching a new record company. No more flip flopping!