Bertelsmann, KKR Form Music Rights Joint Venture

Authored by Mark Hefflinger on July 8, 2009 - 8:00am.

Gutersloh, Germany - German media conglomerate Bertelsmann announced on Wednesday that it has partnered with asset management firm KKR on a new joint venture, which will provide artists and labels with licensing and administration of music rights. Under the deal, Bertelsmann will own 49% of the venture and KKR will own 51%.

While financial terms were not disclosed, Bloomberg reports that KKR will invest $347 million in the venture.

The firm will continue to be called BMG Rights Management -- after the unit that Bertelsmann launched in October 2008, which currently claims some 300 clients.

BMG Rights Management aims to build "a major music rights management business over the medium term through organic growth and acquisitions," with KKR "contributing to BMG's development by providing substantial equity investments through its European private equity funds," the companies said.

Current BMG Rights Management clients include A-ha, Jim Beanz, Toby Gad, 2Raumwohnung, Peter Fox and Nena and Sasha.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aa27umgy5Wns

http://www.kkr.com

http://www.bertlesmann.com