Sony has bought its partner Bertelsmann out of their share in their Sony BMG music joint venture, after merging in 2004 to become a competitor to Universal Music. The deal, worth $1.2 billion, was rumoured for some months now and could be the firepower to buy all or part of BSkyB’s 17.9 percent stake in ITV.

Bertelsmann also owns Channel Five in the UK, and is rumoured to be interested in the stake after a competition commission demanded that BSkyB’s share in ITV to be reduced to 7.5 percent. Other interested parties include Netherlands’ TV production company Endemol, Italy’s Mediaset and Israeli-American media mogul Haim Saban.

As for Sony BMG, it will become Sony Music Entertainment (SMEI); but the company’s manufacturing and distrubution channels will still be shared between the two companies for an additional six years. As well, Bertelsmann will take over selected music catalouge assets in Europe.