Sony Corp. and German multi-media company Bertelsmann AG have finalized the merger of their music units to form Sony BMG Music Entertainment this week. The new company becomes the second largest record company in the world behind the Universal Music Group.
The new deal will fuse Columbia's roster — which includes vets like Bruce Springsteen and Bob Dylan, along with newcomers like Jennifer Lopez — with that of BMG's labels including Arista, J Records and RCA, represented by OutKast, Usher, Justin Timberlake, Alicia Keys, Dido and the Strokes.
Both companies hope the merger will allow restructuring that will save close to $350 million, possibly via job and roster cuts.
Sony Music chairman Andrew Lack has been named CEO of the new label, with Sony president Don Ienner and BMG chairman and CEO Clive Davis running their respective subsidiaries.