Sony Corporation has agreed to purchase Bertelsmann AG's 50-percent stake in Sony BMG, which was originally created in 2004 as a joint venture between the international media and entertainment companies.

Sony BMG, which will become a wholly owned subsidiary of Sony Corporation of America, will be called Sony Music Entertainment Inc. (SMEI), according to a press release.

When the transaction is completed, SMEI will be home to Bruce Springsteen, Celine Dion, Yo-Yo Ma, Justin Timberlake and Alicia Keys. The company will be comprised of noted record labels including Arista Records, Columbia Records and Epic Records.

The two companies will honor and extend their established manufacturing and distribution agreements for additional terms of up to six years. Also, Bertelsmann will take over selected European music catalog assets from Sony BMG.

The transaction must meet a number of conditions, including approvals of regulatory authorities in certain jurisdictions.

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