BMG and Sony Music announced Thursday that they plan to merge their music companies in a 50-50 joint venture.

Currently, of the five major record labels, Sony is ranked number 2, while BMG is ranked number 5. The combined company could rival the number 1 ranked Universal.

According to reports, EMI and Warner are also discussing a merger.

“If (Sony and BMG) stood alone, we would have to cut artist rosters and even closing activities in smaller countries,” BMG chief executive Rolf Schmidt-Holtz told Reuters. “This merger is the best guarantee that we can maintain a broad roster of artists in the current environment.”

Sony Music’s Andy Lack will be chief executive of the venture and BMG’s Rolf Schmidt-Holtz will become chairman.

Artists that would fall under the venture include: Britney Spears, Elvis Presley, Destiny’s Child, Bruce Springsteen, Carlos Santana, and Wyclef Jean.






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