Bertelsmann’s music-publishing joint venture, BMG Rights, is close to securing a financial partner to replace private-equity giant KKR, The Post has learned.
The new backer is said to be a major financial company with the ability to help bring Bertelsmann CEO Thomas Rabe’s dream of expansion to life, sources said.
BMG Rights, which owns the rights to 1 million songs, is pursuing Universal’s Parlophone label to add to the nearly $700 million in acquisitions it has racked up in the past four years.
The add-ons include Chrysalis, which just signed Bryan Ferry as a client, and Bug Music.
Reuters
BMG Rights, which reps artists like Bruno Mars, is close to a deal to bring in a new financial partner.
Under one plan being weighed by BMG Rights, Bertelsmann would grow its 49 percent stake and become the new majority owner. KKR wants to cash out the 51 percent stake it has held since June 2009.
While the identity of the new partner could not be learned at press time, one source said Bertelsmann has talked to “[Ronald] Perelman, Apollo, and even Access Industries [owner of Warner Music Group], about becoming partners in BMG Rights.”
Reps for Apollo, Perelman’s MacAndrews & Forbes and Access Industries had no comment.
Apollo had discussed a tie-up with Bertelsmann as far back as 2006, according to reports at the time.
A Bertelsmann spokesperson, while acknowledging the KKR partnership is closed-ended, cautioned that a KKR exit isn’t coming “anytime soon.” A KKR rep said, “We continue to be pleased with BMG and our partnership with Bertelsmann. This is simply inaccurate.”
BMG Rights catalog includes publishing rights to Bruno Mars, Bill “Lovely Day” Withers and Johnny “That’s What Friends Are For” Mathis.
catkinson@nypost.com
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BMG hits right note with mystery partner
