FRANKFURT, Germany - Bertelsmann AG will sell its 50-percent stake in Sony BMG to Sony Corp. in a $1.2 billion deal, the companies announced Tuesday, giving the Japanese company full ownership of the joint venture whose roster of artists include Alicia Keys and Leona Lewis.

A statement released by the privately held Bertelsmann said the new company will be called Sony Music Entertainment Inc. and become a wholly owned subsidiary of Sony Corp. of America. The joint venture was created in August 2004.

In a filing with the U.S. Securities and Exchange Commission, Sony said Bertelsmann is receiving approximately $600 million in cash for a portion of its interest in Sony BMG .

Sony Corp. of America "will then purchase the remaining interest from Bertelsmann for approximately $600 million. As a result, Bertelsmann will receive approximately $900 million in value for its 50-percent stake, plus $300 million of its share of cash on Sony BMG's balance sheet," it said.

A person familiar with the deal speaking on condition of anonymity because he was not allowed to talk to the press, said the deal, including tax advantages, was worth $1.5 billion.

Bertelsmann will also take over a limited amount of selected European music catalog assets from Sony BMG, which represents about $20 million, or less than 1 percent of Sony BMG's revenue last year.

Bertelsmann Chief Executive Hartmut Ostrowski said the decision was made to sell the 50-percent stake after a careful but thorough review. He called it consistent with the German company's new growth strategy.

"This move is consistent with our new growth strategy and will enable us to focus on our defined growth areas," he said. "Sony has been an excellent partner, and they are the right company to take this business to the next step and ensure that it realizes its full value and potential."

Once the deal, which is subject to regulatory approvals, is complete, Sony Music Entertainment Inc. will be comprised of several music labels, including Arista Records, Columbia Records, Epic Records, J Records, Jive Records, RCA Records and Zomba.

Its artists will include Celine Dion, Bruce Springsteen, Justin Timberlake and Usher, among others.