Bertelsmann AG, Sony to merge

FRANKFURT, Germany (AP) -- Bertelsmann AG and Sony Corp. plan to merge their music businesses, Bertelsmann announced today.
A merger of Sony Music Entertainment and Bertelsmann's BMG would bring together the world's No. 2 and No. 5 music companies as the industry struggles with losses attributed to music piracy.
The world's No. 1 music company is Universal Music Group, a part of Vivendi Universal SA.
The deal, if it goes through, would combine Sony and BMG's recorded music business but would exclude music publishing, physical distribution and manufacturing. The new company, to be called Sony BMG, will be owned equally by Bertelsmann and Sony.
The agreement will be subject to approval by regulatory authorities in the United States and Europe.