Former EMI Denmark executives Michael Ritto and Benny Bach have unveiled details of a new music venture, Music Business Organization (MBO).

Former EMI Denmark executives Michael Ritto and Benny Bach have unveiled details of a new music venture, Music Business Organization (MBO).

Taking dual headquarters in the Danish cities Aalborg and Copenhagen, the project functions as a holding company for 10 companies. It will have a hand in most phases of the music process and will cater to a broad genre spectrum.

MBO has stakes of 50-90% in each of its affiliates, which include Copenhagen Records, CMC Entertainment and SB Studio. Ritto and Bach each invested €667,000 ($795,000) in the venture. The outstanding shares are owned by 12 other investors who are all active in their respective businesses.

"MBO's objective is to strategically coach the companies so they can take advantage of a larger corporate structure when it comes to sales, distribution, finance and economy, administration and IT," says Bach. "The idea is to create the fundamentals so the creative and human resource talent within them can flourish."

The initiative is 50/50 owned by Ritto and Bach. Ritto, who will helm the Copenhagen office, will be responsible for regional activities, new media, international contacts and act as primary spokesman. Bach will take care of economic and administrative tasks, as well as operations related to his office in Aalborg. Ritto and Bach will also share the CEO title.

MBO has also taken a stake in Danish distributor GDC, which will handle domestic distribution for product for companies within its constellation. Sweden's Bonnier Amigo Music Distribution will distribute in the Nordic region. An international distribution deal has yet to be announced.

The combined companies have a total of nearly 50 signings, and employ 42 staffers. Bach expects MBO to be in the black in its first year of operation.

"Within the framework of the music industry as it is developing today, we will be working for artists to make gains from their core assets, intellectual rights, and have established the network to do this effectively" says Ritto.

Ritto is IFPI Denmark chairman and former president of EMI Recorded Music Denmark, which acquired his Medley Records in 1992. Bach was managing director of record label CMC, an EMI subsidiary, until he bought out the company and most of its assets last summer.