Sony BMG Executives Play Musical Chairs
Sony and Bertelsmann, the two companies that jointly own music giant Sony BMG, will reportedly swap executives as a solution to their ongoing internal problems. Current CEO Andrew Lack is to switch places with Bertelsmann executive Rolf Schmidt-Holtz, who has long been rumored as Lack's successor.
In his article, The LA TImes' Charles Duhigg points to the internal separations that will continue to exist. "The swap would represent a mixed victory for Lack, who is credited with driving the Sony BMG merger. Insiders say the power struggle has exacerbated the rifts between BMG and Sony Music, which remain separate divisions despite sharing a corporate parent."
Jeff Leeds noted the same in his article for the NY Times: "Even as the two sides have approached an accord, the tumult surrounding the joint venture's management has prompted many inside and outside the company to question whether Sony, the Japanese electronics giant, and Bertelsmann, the German media company, can maintain their relationship in the long term."
Music Groups