Sony is finalizing talks to acquire Believe Digital, a music distribution and label services provider based in France. With business operations in over 25 countries, Believe was founded in 2005 and owns TuneCore, the American company that provides indie music to significant online distributors, including Apple. The company has annual sales of around $250 million, and focuses on indie music and works with 150,000 international artists. The upcoming transaction is estimated at between $355 million and $444 million, and will include a majority stake and an information technology investment fund.
In recent years, Sony Music Entertainment has acquired several major players in the music industry.
According to Nikkei Asian Review, “The Japanese conglomerate made the world’s largest music publisher, Sony/ATV Music Publishing, a wholly owned subsidiary last year by purchasing the remaining 50% interest for $750 million. In 2015, it turned indie-music distributor Orchard Media into a wholly owned subsidiary.
It continues, “Sony’s music segment generated a 75.8 billion yen operating profit in fiscal 2016, accounting for 26% of overall group profit. The company is sharpening focus on steadily earning profits from a stable customer base, and the broader music content and distribution operations are seen contributing a significant chunk of earnings going forward.”