BMG to merge with Sony

Germany's Bertelsmann has said it plans to merge its BMG music business with Japan's Sony in a 50-50 joint venture. The deal is said to be based on a 50-50 valuation of the two assets, and there will be no cash payment.

The new company would combine the second and fifth biggest record labels, and its market share would rival market leader Universal Music's 25.9% share of global music sales.