Globo sells Brazil's leading indie label Som Livre to Sony Music

 By Emmanuel Legrand 

Sony Music Entertainment (SME) has acquired Som Livre, Brazil's largest independent music company, from media group Globo Comunicação E Participações for the sum of 1.44 billion Brazilian reais (about $255 million), according to a filing with the Securities and Exchange Commission.

 

  This acquisition is subject to customary regulatory and closing conditions, including approval from Brazil's competition authorities CADE (Conselho Administrativo de Defesa Econômica).

 

Brazil's market leader
 

  Billboard noted that Sony, which is already the market leader in Brazil, has tightened its grip on the biggest music market in South America and the world's 11th largest market. Som Livre is the country's third largest company in market share, right after SME and Universal Music Group.
 

  SME said that bringing Som Livre into Sony Music's group of companies "builds on a long-running successful relationship" between Som Livre and The Orchard, Sony Music’s distribution company for the independent sector, which was already distributing Som Livre.

  Globo announced last year that it was ready to dispose of the record company, which was founded in 1969. “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," said Jorge Nóbrega, CEO of Globo.

High level of professionalism

 

  He added: "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.”
 

  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. It will also provide a wide range of label and diversified service offerings to the Brazilian music community. Artists signed to the company include Marilia Mendonça, Jorge & Mateus, Wesley Safadão, Lexa, Israel & Rodolffo, Dudu MC, Filipe Ret and Grupo Menos é Mais, among others.



 

  Som Livre is also a producer of festivals in Brazil, including Festeja, Brazil’s largest Sertanejo music festival, and also is the operator of Fluve, a music distribution platform servicing Brazil’s independent labels and artists. Current CEO Marcelo Soares will continue to lead Som Livre.

Artist-friendly strategies

 

  Soares said, "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.”
 

  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.”