ZOMBA INTEGRATION STARTS HERE

As part of that consolidation, Barry Weiss will remain Jive Records President, and will add the U.K. recorded music operations to his duties. Steve Jenkins will continue in his current role as Managing Director of Zomba Records U.K., and will report to Weiss. Zomba’s Christian music company, Provident Music Group, will remain independent, reporting to Joe Galante. More personnel announcements are expected. Other Zomba assets, such as the distribution businesses in the U.K., Germany and Benelux countries, will not be affected. Other creative assets outside the U.S. and U.K. will be absorbed into BMG’s global infrastructures.

Backoffice and non-core functions, including business affairs, technology and other redundant divisions, will be combined to create new efficiencies as part of the plan. Zomba’s creative assets outside the U.S. and U.K. will be absorbed into BMG’s global infrastructures. In all about 350 employees will lose their jobs,

Said Schmidt-Holtz: "After much deliberation and consultation with our colleagues at Zomba, we are confident that our plan is the best way to continue the success of Zomba’s labels and publishing operations while creating the best strategic fit possible for BMG. We have made it a priority to preserve Zomba’s unique culture and identity. We know they are vital elements of the company’s success. As such, the creative centers of Zomba’s Records and Publishing companies in the U.S. and U.K. will retain their independence within BMG."

He added: "Consolidation means some staff reductions to eliminate duplicated and overlapping jobs and services. In all these matters, we will implement the integration fairly and in accordance with local laws, customs and practices."

Schmidt-Holtz still views Zomba’s future as bright. "We are pleased to count Zomba as one of our creative pillars, alongside Arista Records, RCA Music Group, RLG-Nashville, BMG U.K., BMG CSA and BMG Music Publishing, among others. We are proud of our diverse parts, but I know that by working together with the same spirit, BMG will be able to face any challenge."