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Sony Music $430 million acquisition of AWAL officially cleared by UK competition watchdog

It is official: Music by Sonyacquire the artist service company AWAL has been completely cleared by the UK’s Competition and Markets Authority (CMA).

News to four weeks after the CMA temporarily allows the agreement, pending a final decision.

Sony Music acquires UK-based AWAL as part of Buyback $430 million are from Kobalt music group closed last May. The agreement also saw Sony obtain Kobalt’s Neighborhood Rights.

The Competition and Markets Authority (CMA) called the merger a Phase 2 in-depth investigation in September 2021, after identifying competition concerns during the initial Phase 1 investigation. .

Now, after consultations that ended on March 4, the CMA has upheld its interim findings and dropped the agreement.

CMA investigation assesses the extent to which Sony owns Fruit garden and AWAL can be expected to compete for artist and label (A&L) services. It also looks at how closely Sony and AWAL are likely to compete to sign successful artists.

The CMA said in a media statement today: “[W]hile is not currently in close competition due to their different areas of focus, The Orchard could become a stronger competitor to AWAL in providing artist services in the future.

“However, there are many other suppliers that will continue to effectively compete with both companies – including independent A&L companies, A&L affiliates of other major brands (such as WarnerADA of and Universal Music Groupof Virgin) and independent brands. ”

The CMA added: “In terms of competition with Sony, AWAL remains a relatively small player when it comes to signing artists that require a higher level of support and investment.

“Despite trying to expand its offering, AWAL is expected to continue to compete with Sony only on a limited basis. During its investigation, the CMA also discovered that many other companies had begun offering similar services, which could be expected to compensate for the limited loss in competition from AWAL. ”

“After carefully evaluating the merger, we have found that it is unlikely to affect competition in a way that reduces the selection or quality of pre-recorded tracks or increases prices.”

Margot Daly, CMA . Investigation Team

Margot Daly, Chair of the Independent CMA Investigations Team, said: “We launched this investigation because we wanted to make sure that this sale would not lead to a worse outcome for the artists and fans. tomb. The music industry is vital to the UK economy and effective competition ensures that it works for everyone.

“After carefully evaluating the merger, we have found that it is unlikely to affect competition in a way that reduces the selection or quality of pre-recorded tracks or increases prices.”


Sony’s global music operations – including recorded and published music – generated $7.49 billion in revenue for the calendar year 2021, according to MBW’s analysis.

That number has grown to $1.44 billion year-over-year.Worldwide music business

https://www.musicbusinessworldwide.com/sony-musics-430m-acquisition-of-awal-officially-cleared-by-uk-competition-watchdog/ Sony Music $430 million acquisition of AWAL officially cleared by UK competition watchdog

Fry Electronics Team

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