Bertelsmann in talks to acquire KKR’s stake in music group BMG

Music mixer in a studio

German media group Bertelsmann AG (FRA:BTG4), a 49%-owner of BMG, could reach a deal worth some EUR500m (USD667.5m) by the end of February to buy the rest of the music rights management venture from private equity partner KKR & Co LP (NYSE:KKR), the Financial Times cited informed sources as saying.

KKR, the owner of the other 51% in BMG Rights Management, and Bertelsmann were rumoured to have decided at the end of 2012 to do the deal for BMG by the end of the first quarter of this year, the paper said.

This move would be KKR’s second exit deal from a German media company after the agreement earlier in February to sell its stake in ProSiebenSat1 Media AG (ETR:PSM). For Bertelsmann, having full control of BMG, owner of 1m music rights, would mean establishing itself in digital music, a sector which it had left between 2006 and 2008.

BMG anticipates revenues of EUR350m for 2013.

Bertelsmann and KKR did not wish to comment to the FT.

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