Sony Corp. said Tuesday it will buy two units from U.S. Kobalt Music Group Ltd. for $430 million -- a music distribution service for independent recording artists and a performance rights collecting operation -- 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 businesses. 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 through March.
It expected in October a net profit of 800 billion yen ($7.6 billion) for fiscal 2020, up 37.4 percent 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 Sony subsidiary Aniplex Inc. and Toho Co.