Sony, Bertelsmann Deny Talk of Merger

Sony Corp. and Bertelsmann Inc. denied that they are negotiating a deal to join forces. “There has been much unfounded speculation in the press in recent weeks about Sony’s plans for its entertainment assets,” said Nobuyuki Idei, chief executive of Sony. “We want to be very clear in stating that our entertainment businesses, Sony Music Entertainment and Sony Pictures Entertainment, are not for sale.” The statement follows recent reports in the Wall Street Journal and other publications suggesting that Bertelsmann was considering purchasing or merging its record division with Sony Music. “We are flattered that so many outside our company recognize the quality of our businesses, and we will continue to maintain an open dialogue with colleagues and competitors around the world,” Idei said. “However, that does not mean that we intend to lessen our control over these businesses, as they are the cornerstone in our overall strategy.” Bertelsmann also denied that the German conglomerate is negotiating with Sony. “Any speculation on alleged talks with Sony or other music companies is completely unfounded,” Bertelsmann said. “We are not in concrete talks with Sony, and there were no concrete talks with EMI, either.”