What do both sides need to do now in order to set up Sony BMG formally?

Sony and Bertelsmann AG have agreed to merge their music units. It’s a deal that puts hot icons, like Britney Spears—heard here—and Beyonce under the same label in a combination first announced on November 6. Now the agreement has been finalized. The only step left here: antitrust regulators have to give their final approval. The new combined music company, known as Sony BMG, will be based in New York City. It comes as the music industry faces continual challenges for the fourth straight year, from piracy to falling music sales. The London-based market-research company Informa Group says it looked for another decline in recorded music sales in the year 2004 to the tune of 8.9 percent. That means mat the contracting music industry could have less than $28 billion in sales when all is said and done.