Sony Music is buying Som Livre, Brazil’s biggest homegrown record label, for $255m

We told you so. Last month, MBW predicted that Som Livre, owner of the biggest domestic-born record label in Brazil, was set to be acquired by a major music company.

Our sources informed us the price of the deal would likely land somewhere around $250 million to $300 million, and that all three majors had kicked the tires of the firm.

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

(We’re sticking with our prediction on the ballpark deal price.)

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

So long as the deal passes regulatory approval, Sony Music will buy Som Livre from its current parent, the Globo group.

Alongside its record label, Som Livre also runs additional operations in music publishing, live events and distribution.

On the label side, it is home to many of Brazil’s most popular artists including Marilia Mendonça (whose YouTube channel has racked up over 13 billion views), plus Jorge & Mateus, Wesley Safadão, and Lexa.

Rob Stringer, Chairman, 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.”

Subsequent to the acquisition, Sony says that Som Livre will become a “new stand-alone creative center within Sony Music” and will “continue to sign, develop and market its own roster of talent and provide a wide range of label and diversified service offerings to the Brazilian music community”.

“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.”

Rob Stringer, Sony Music

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

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

Said Soares: “Som Livre has had a great 50-year run as a Globo company. Globo’s support was key to the growth of Som Livre, especially during the last decade when we built the business to what it is today.

“When facing the future now and seeing all the opportunities ahead, it is very exciting to know that we’ll have Sony Music with us. We are once again in the right place to allow the best possibilities of career development for our artists and employees.

“I’m very grateful for all that we accomplished with Globo, and look forward to beginning this new era with Sony Music.”

“When facing the future now and seeing all the opportunities ahead, it is very exciting to know that we’ll have Sony Music with us.”

Marcelo Soares, Som Livre

Afo Verde, Chairman & CEO, Sony Music Latin Iberia said, “Som Livre is a home for some of the most creative Brazilian artists and has a decade-long track record of important local language music development. We both believe in artist friendly strategies and collectively we will provide an innovative approach to the Brazilian market and the whole Latin region.”

Brad Navin, CEO, The Orchard said, “The Orchard and Som Livre have worked together for many years, introducing their seminal artists to music fans worldwide. We’re excited to continue and expand our partnership as we further the Company’s commitment to investing in the vibrant Brazilian music market.”

Jorge Nóbrega, CEO of Globo said, “We are very happy to have found at Sony Music a new home for Som Livre, a business that was born and raised inside Globo, and that has always been so dear for us all. Som Livre has produced and put out music with Globo for the last half a century, it was an important chapter of Globo’s history.

“We wanted to make sure that this deal would preserve everything that Som Livre represents for the Brazilian people. Since the beginning of the talks we noticed a high level of professionalism, interest, and respect coming from Sony Music that made it a perfect match for Som Livre. I wish Sony Music and Som Livre many more years of success.”

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

It also comes in the same week that another Sony Music Group company – Sony Music Publishing – announced it was acquiring Paul Simon’s evergreen song catalog in another deal presumed to run into nine figures. (Anyone else get the feeling Sony is taking this music rights acquisition lark very seriously in 2021?)

Brazil is understood to be the world’s eleventh largest recorded music market, according to the latest IFPI data.Music Business Worldwide