Still four majors, but now there are only four players. The company will be renamed Sony Music Entertainment Inc.

From the Times Online:

The sale price is towards the bottom of the range that Bertelsmann hoped for, although the poor state of the recorded music business and the German group's desire to exit the industry put pressure on the price.

Bertelsmann had hoped for $1.5 billion but ended up receiving $1.2 billion in cash.

It is also walking away with a small catalogue that generated $20 million in sales last year, and further agreements to provide some services to the group, which it says bump up the value to $1.5 billion.

From The Guardian:

The move, which has been rumoured for some months, could provide Bertelsmann with the financial firepower to buy all or part of BSkyB's controversial 17.9% stake in ITV.

As a point of comparison, Terra Firma acquired EMI (both recorded music and publishing) last year for £3.2 billion ($6.4 billion). Warner Music Group currently has a market capitalization of $1.2 billion, and many would argue WMG's publishing assets are the most valuable part of the company.

Sony's acquisition today is for only recorded music assets. BMG Music Publishing was not part of the joint venture, and Bertelsmann sold it to Vivendi for $2.09 billion in late 2006.

Update: Alley Insider has the email from Bertelsmann's CEO to Sony BMG employees.

[music jobs] New York University is seeking a Department Chair for The Clive Davis Department of Recorded Music.