Blackstone Capital Partners III LP, an affiliate of New York-based private investment bank The Blackstone Group, reached a definitive agreement with AOL Time Warner Inc.'s Warner Music Group and Sony Corp.'s Sony Music Entertainment Inc. yesterday to acquire a majority interest in The Columbia House Company.
The Columbia House Company is the world's largest direct marketer of music, videos and DVD home entertainment products, with more than 16 million offline and online club members in the United States, Canada and Mexico.
Both Sony and Warner Music Group will retain minority interests in Columbia House. The terms of the transaction were not disclosed.
Financing for the transaction, which is expected to close next month, is being arranged by UBS Warburg LLC and Banc of America Securities LLC.