Sony corporation is set to acquire two companies; AWAL and Kobalt Neighbouring Rights (KNR) – from Kobalt Music Group. Sony corporation has come forward to say that provided the regulatory conditions are met, the acquired companies will be in the company’s news division.
Sony corporation is reported to have paid the sum of USD 430 million (“Depending on customary working capital and other arrangements”) to take possession of AWAL and KNR.
AWAL, a distribution and services company for self-sustaining artists, will operate outside of The Orchard, Sony’s existing indie label and artist-servicing subsidiary.
However, Sony says that The Orchard will “power” AWAL in future and that the absorption of AWAL into the Sony Music system will increase the global reach of the ex-Kobalt company.