Andrew Lack's run as chief executive of Sony BMG appears to be nearing its close. Bertelsmann and Sony are close to finalizing a peace plan that would end a public feud over executive control of their
Andrew Lack’s run as chief executive of Sony BMG appears to be nearing its close. Bertelsmann and Sony are close to finalizing a peace plan that would end a public feud over executive control of their Sony BMG Music Entertainment joint venture. In the process, Lack and non-executive chairman Rolf Schmidt-Holtz, are set to trade roles, sources familiar with the matter say.
The embattled Lack, Sony’s highest ranking officer in the joint venture, will relinquish control of the company in March when his contract expires to become chairman of the Sony BMG board; Schmidt-Holtz, a Bertelsmann vet, will relocate to New York to take responsibility for Sony BMG’s global operations as the new CEO.
Schmidt-Holtz, 57, is BMG’s former chairman and CEO. He is also Bertelsmann Group's chief creative officer (CCO) and sits on the company’s management board in its Gütersloh-based HQ. Schmidt-Holtz will relinquish all his Bertelsmann responsibilities to take over the joint venture, sources say.
Sony BMG executives could not be reached for comment. Gütersloh-based Bertelsmann head of press Andreas Grafemeyer said he could not confirm the report.
The proposed move reportedly could be announced as early as next week. Uncertain is the amount of power Lack will have in the new alignment. Published reports have suggested that Lack may retain control of certain unspecified operations.