What a month it’s been for Sony Music Group.
In early February, the company’s parent – Sony Corp – revealed that its global recorded music and music publishing entities generated approximately $7.5 billion in calendar 2021. According to MBW’s calculations, that number was up by no less than $1.4 billion year-on-year.
Two weeks later, the UK’s Competition and Markets Authority (CMA) gave the provisional green light to Sony’s $430 million acquisition of AWAL from Kobalt Music Group.
Today (February 23), more massive news: MBW has confirmed that Brazil’s equivalent competition watchdog, CADE (Conselho Administrativo de Defesa Econômica), has given approval to Sony Music’s acquisition of Som Livre, owner of Brazil’s biggest domestic record label.
The acquisition will significantly stretch Sony Music’s lead as the largest recorded music company in Brazil, our sources tell us.
Prior to the acquisition, Som Livre was understood to be Brazil’s third biggest recorded music company overall by market share, behind Sony and Universal.
In addition to Som Livre’s record label, Sony Music is also acquiring the firm’s sister music publishing and live events operations.
Sony initially announced its acquisition of Som Livre – from prior owner Globo Comunicação E Participações – in April last year.
The price of the deal was revealed to be BRL 1.438 billion, which converted to approximately USD $255 million at the time.
Speaking as part of that announcement, Rob Stringer, Chairman of Sony Music Group said: “We are delighted to be investing in Som Livre and expanding our existing relationship with this special company.
“Brazil is one of the most dynamic and competitive growing music markets in the world and we will provide huge opportunities for creators through our shared vision.”
Confirming today’s story, a Sony Music spokesperson commented: “We welcome today’s conclusion of the approval process from CADE of Sony Music Entertainment’s acquisition of Som Livre.
“Som Livre’s roster of artists and songwriters, as well as employees, will now benefit from Sony Music’s global network of resources and partnerships, offering greater worldwide reach for Brazil’s creative community.”
Som Livre’s catalog includes the music of Brazilian superstar Marilia Mendonça, who tragically died in a plane crash in November 2021.
Other major Brazilian artists who have signed to Som Livre include Jorge & Mateus, Wesley Safadão, and Lexa – plus rising stars such as Israel & Rodolffo, Dudu MC, Filipe Ret and Grupo Menos é Mais.
Brazil was the 11th biggest recorded music market in the world in 2020 according to the IFPI.
The country generated $306.4 million of recorded music trade revenues that year, up 24.5% versus 2019.
Streaming claims more than 80% of the recorded music revenues generated in Brazil annually, according to the IFPI numbers.Music Business Worldwide