NEW YORK, Dec. 12 (UPI) -- Sony and BMG were reported close to a binding agreement Friday that would merge their recorded music divisions.
The deal formalizes the 50-50 joint venture which the two companies set out a month ago when they announced their intention to merge, the Financial Times said. It clears the way for regulators in Brussels to start considering the deal. The Federal Trade Commission in Washington has already begun its review.
The definitive agreement could lead to a wide-ranging restructuring of the recorded music business. The enlarged company is expected to have about 29 percent of the U.S. album market, the key size measurement for the music industry. Universal Music has just over 30 percent.
This autumn, the two companies appeared to be struggling to catch up with rivals Warner Music and EMI, which were making progress towards a deal. But, Warner Music instead went to a consortium of financial investors led by Edgar Bronfman,
