BMG Acquires Zomba

United States owned Zomba, who released music

from such hip-hop acts as Mystikal, Keith

Murray, KRS-One as well as 'N Sync, The Backstreet Boys and Britney Spears, was purchased by Bertelsmann

Music Group (BMG) for around $3 billion dollars. BMG Currently owns 25 percent

of Zomba publishing and 20 percent of the Zomba record label. Zomba exercised

an option to sell the remainder of the company today (June 11).

"While the exercise of this option will

undoubtedly be a surprise to many in the music industry, this is a natural culmination

of many years of close business ties and a complex series of agreements negotiated

12 years ago," Chairman and CEO Clive Calder said.

The move further consolidates the music industry,

as Zomba joins such BMG labels as Arista, J, Windham Hill and La Face.

"Over the years, I have admired Zomba's

impressive results, which are perhaps the most spectacular in the industry.

We are very excited about its future prospects and it will definitely strengthen

our music business," Bertelsmann chief Thomas Middelhoff said in the statement.