Sony Corp announced today it has finalized the acquisition of BMG Music. The deal brings an end to the four-year Sony BMG joint venture. The new company will be called called Sony Music Entertainment Inc.

The $1.2 billion acquisition ($900 million net of cash received) was announced on August 5 and received approval from the European Union on September 15.

What impact will this have? The company should benefit from a single, more focused leadership. In the years after the two companies joined forces, cultural differences, constant reorganizations and power struggles hurt the company. Some believe Sony BMG has lagged behind some of its competitors in digital initiatives and progress. Less debatable is that a combination of factors has lead Sony BMG to loose recorded music market share in the last four years (from a 21.5% global share to 20.1% at the end of 2007). There is definitely room for improvement.