Sony BMG Posts 1st Quarter Losses, Sony Looks to Buy Out BMG

By Daniel Kreps

July 30, 2008 9:00 AM ET

Sony BMG Music Entertainment lost $49 million on sales in its first fiscal quarter. Over the same period last year, the company had a net income of $21 million. The company's three best sellers this year have been Usher's Here I Stand, Leona Lewis' Spirit and Neil Diamond's Home Before Dark. While all three debuted atop the Billboard album charts in their first week, none of the three have managed to crack the platinum mark. Despite the losses, Sony is reportedly seeking to buy out the remaining 50% stake it doesn't own in the company from German company Bertelsmann. The buy out could be complete by early August, as Bertelsmann has come down on their price from $1.2-1.5 billion to roughly $920 million.