Sony Corp. said Tuesday it will buy two units — a music distribution service for independent recording artists, and a performance rights collecting operation — from U.S. Kobalt Music Group Ltd. for $430 million (¥45.2 billion), to enhance its business.
Sony Music Entertainment, a Sony unit based in the United States, will purchase Kobalt's Awal, which supports independent artists such as Grammy winner Finneas in marketing and distributing their music, and Kobalt Neighbouring Rights, which collects royalties for artists.
The electronics and entertainment giant has been increasingly focused on the gaming and entertainment sectors. The purchase of the two major Kobalt units is expected to benefit Sony's medium- to long-term growth, a company spokesman said.
Sony said the transition will not impact its earnings forecast for the current business year, which runs through March.
In October, it expected a net profit of ¥800 billion ($7.6 billion) for fiscal 2020, up 37.4% from a year earlier on strong game software and a boost from a Japanese animated movie based on the blockbuster "Demon Slayer" manga series, which is co-distributed by Toho Co. and Sony subsidiary Aniplex Inc.