Sony Music is shopping for Som Livre, Brazil’s greatest homegrown file label, for $255m

0

We told you. Last month, MBW forecast that Som Livre, owner of the largest Brazilian-born record label, would be acquired by a major music company.

Our sources told us that the price of the deal would likely be between $ 250 million and $ 300 million, and that all three majors kicked the company’s tires.

Now we know who got it: Sony Music Entertainment confirmed today (April 1st) that it has struck a deal to acquire Som Livre for an undisclosed fee.

(We’re sticking to our forecast of the price of the baseball deal.)

UPDATE: Sony has confirmed in an SEC filing that the purchase price for Som Livre is BRL 1.438 billion (approx. USD 255 million).

As long as the deal receives regulatory approval, Sony Music will purchase Som Livre from its current parent company, the Globo Group.

In addition to the record label, Som Livre has other activities in the field of music publishing, live events and sales.

The label side is home to many of Brazil’s most popular artists, including Marilia Mendonça (whose YouTube channel has been viewed more than 13 billion times), as well as Jorge & Mateus, Wesley Safadão and Lexa.

Rob Stringer, Chairman of Sony Music Group, said, “We are very excited to invest in Som Livre and expand our existing relationship with this particular company.

“Brazil is one of the most dynamic and competitive growing music markets in the world and we will offer creators tremendous opportunities through our shared vision.”

After the acquisition, Som Livre will become a “new independent creative hub within Sony Music,” according to Sony, and will “continue to sign, develop and market its own talent roster and offer a wide range of labels and diversified services to the Brazilian music community”.

“Brazil is one of the most dynamic and competitive growing music markets in the world and we will offer creators tremendous opportunities through our shared vision.”

Rob Stringer, Sony Music

The deal will build on a longstanding relationship between Som Livre and The Orchard, Sony Music’s independent music distribution company.

Marcelo Soares will remain CEO of Som Livre after the buyout.

Soares said: “Som Livre has had a great 50 years as a Globo company. Globo’s support has been key to Som Livre’s growth, especially over the past decade as we built the business as it is today.

“As we now look to the future and see all the opportunities that present themselves, it is very exciting to know that we will have Sony Music with us. We are back in the right place to offer our artists and employees the best career development opportunities.

“I am very grateful for everything we have achieved with Globo and I look forward to starting this new era with Sony Music.”

“As we look to the future now and see all the opportunities that present themselves, it is very exciting to know that we will have Sony Music with us.”

Marcelo Soares, Som Livre

Afo Verde, Sony Music Latin Iberia Chairman and CEO, said: “Som Livre is home to some of the most creative Brazilian artists and has a decades-long track record of making important musical developments in the local language. We both believe in artist-friendly strategies and together we will develop an innovative approach for the Brazilian market and the entire Latin American region. “

Brad Navin, CEO of The Orchard, said, “The Orchard and Som Livre have been working together for many years, introducing their pioneering artists to music fans around the world. We look forward to continuing and expanding our partnership to further expand the company’s commitment to investing in the vibrant Brazilian music market. “

Jorge Nóbrega, CEO of Globo, said: “We are delighted to have found a new home at Sony Music for Som Livre, a company that was born and raised in Globo and that has always been close to our hearts. Som Livre has been producing and releasing music with Globo for half a century. It was an important chapter in Globo’s history.

“We wanted to make sure that this deal would keep everything that Som Livre represents to the Brazilian people. Since the start of the conversations we have noticed a high level of professionalism, interest and respect from Sony Music that made it a perfect Som Livre. I wish Sony Music and Som Livre many years of success. “

Today’s news comes two months after Sony Music announced it has signed a $ 430 million deal to acquire AWAL and Kobalt Neighboring Rights from Kobalt.

That same week, another Sony Music Group company – Sony Music Publishing – also announced that it would acquire Paul Simon’s evergreen song catalog in another deal that is expected to be in the nine-digit range. (Does anyone else feel like Sony is taking this lark to acquire music rights in 2021 very seriously?)

According to the latest IFPI data, Brazil is considered the eleventh largest music market in the world.Music business worldwide

Leave A Reply

Your email address will not be published.