Sony says it’s ‘aggressively pursuing’ music acquisitions… and buys a Mexican catalog to show it
Sony Music Group’s strong first quarter results were announced today – including $ 1.3 billion in music sales for the three months ended March and global release revenues up 11% year over year.
Under the leadership of its chairman Rob Stringer, SMG’s latest acquisition offensive is progressing rapidly.
In the past three months, SMG announced three industry-shaking deals:
If the Paul Simon deal came anywhere near $ 300 million (and we’re not saying it does, but Universal’s acquisition of Bob Dylan’s catalog makes $ 300 million to $ 400 million) surely possible), it would mean Sony is committing most of it in the first four months of 2021 alone, there was a billion dollars spent on three music stores.
Obviously there is more to where that comes from.
Today (April 28), Sony Group Corp. Vice Chairman and CFO Totoki Hiroki gave investors some strong words about what Sony Music Group has in store for the coming months.
“We are constantly improving our ability to discover and nurture artists and continuously create hits, and we want to keep increasing our profitability going forward,” said Hiroki of Sony’s music business, noting that both the AWAL deal and the Som Livre buyouts were successfully agreed, but the regulatory approval has not yet been clarified.
“The investment opportunities in the music segment are increasing and we are aggressively pursuing them.”
Totoki Hiroki, Sony Group Corp (speaking today)
Significantly, he added: “The investment opportunities in the music segment are increasing and we are aggressively pursuing them.”
He’s not kidding.
This week Sony Music Entertainment Mexico made a big announcement in Mexico.
It was agreed to purchase the music catalog from the Mexican regional label and management company Remex Music for an undisclosed fee.
The Monterrey and Remex repertoire in the US includes recordings by local hitmakers such as Edwin Luna and Trakalosa de Monterrey, Leandro Ríos, Diego Herrera and Banda Tierra Sagrada.
Remex, founded and operated by Germán and Domingo Chávez, will continue to be an independent label, starting again with a blank board, but continuing to release new music through Sony’s The Orchard.
“We are very pleased to have acquired the diverse and extensive catalog from Remex Music, the result of the successful work that Domingo Chávez and Germán Chávez have done in recent years.”
Roberto López, Sony Music Mexico
Sony Music Mexico President Roberto López said (translated): “We are delighted to have acquired the diverse and rich catalog from Remex Music, the result of the successful work that Domingo Chávez and Germán Chávez have done on the Internet last year few years.
“We are proud to work with such talented executives who will develop their cast in the dynamic and dynamic segment of the Mexican region. I am very grateful to Domingo and Germán for their trust in our company. This music catalog is a new treasure for us, which we will take very good care of. ”
Germán and Domingo Chávez, Presidents of Remex Music, commented, “A decade after starting Remex Music, we are proud that executives like Roberto López, President of Sony Music México, have shown an interest in our talent and have confidence in the cast the company.
“This opens up the possibility of mergers with national and international artists from various musical genres that will further develop the market for our artists. ”
Jason Pascal, Senior VP of Orchard, Global Artist & Label Partnerships, said, “Mexican Regional [music] has been an integral part of The Orchard’s global strategy for more than a decade. Our Mexico City team has the experience and approach to help record labels in the genre achieve their goals.
“Remex has been a priority for us since the beginning of our sales relationship and it was a special privilege to be part of its success story. We look forward to continuing to work together on further projects. “Music business worldwide