Sony Music’s R$1.4 Billion Acquisition of Som Livre

Pinheiro Guimaraes advised Globo Comunicação e Participações S.A., while CGM Advogados advised Sony Music Entertainment Brasil Ltda. on the transaction.

Globo Comunicação e Participações S.A. executed the sale of 100% of the capital stock of Comercial Fonográfica RGE Ltda. and its affiliates (which are the operational entities behind Som Livre musical label) to Sony Music Group.

The purchase price was set at R$1.4 billion.

Founded in 1969, Som Livre is a multifaceted music entertainment label, with a repertoire across several Brazilian genres, ranging from Sertanejo, Pagode and Brazilian Funk to MPB, with additional operations in music publishing, live concerts and music distribution. Som Livre also acts as a producer of multiple festivals in Brazil, including Festeja, Brazil’s largest Sertanejo music festival. Additionally, the assets involved in the operation include the stocks of Fluve, a music distribution platform servicing Brazil’s independent labels and artists.

Som Livre gathers some of Brazil’s most popular artists, such as Marilia Mendonça, Jorge & Mateus and Wesley Safadão. After the sale to Sony, Som Livre will become a new stand-alone creative center within Sony Music that will continue to sign, develop and market its own roster of talent and provide a wide range of label and diversified service offerings to the Brazilian music community.

The deal involved several complex crossborder aspects as the buyer, Sony Music Entertainment Brasil Ltda. is indirectly controlled by Sony Music Entertainment (USA) and Sony Music Entertainment is fully owned by Sony Group Corporation (Japan).

Pinheiro Guimaraes acted as counsel to Grupo Globo with partners Plinio Pinheiro Guimarães N. (Picture), Daniela de Melo Fassheber and René Mostardeiro Brunet, and associates Gabriel Banwell Ayres and Leandro Bittencourt

CGM Advogados acted as counsel to Sony Music Entertainment Brasil Ltda. With partners Adriano Chaves and André Gilberto, and associates Marcia Mandelbaum and Marilia Bello Torres.

Involved fees earner: Marilia Bello Torres – CGM Advogados; Marcia Issler Mandelbaum – CGM Advogados; André Marques Gilberto – CGM Advogados; Adriano Raposo do Amaral Pinto Chaves – CGM Advogados; Gabriel Banwell Ayres – Pinheiro Guimarães; Leandro Bittencourt – Pinheiro Guimarães; Daniela de Melo Fassheber – Pinheiro Guimarães; René Mostardeiro Brunet – Pinheiro Guimarães; Plinio Pinheiro Guimarães (n) – Pinheiro Guimarães;

Law Firms: CGM Advogados; Pinheiro Guimarães;

Clients: Globo Comunicación e Participações S.A.; Sony Music Entertainment Brasil;