Sony Music buys Kobalt’s AWAL and KNR

The deal is worth about $430m. AWAL offers independent artists services such as distribution, marketing, radio promotion, analytics and synch. It is the home to musicians including Lauv, Nick Cave & The Bad Seeds, Little Simz, and South Africa’s Die Antwoord, among many others. KNR has distributed more than $250m to more than 2 000 artist and label clients since 2013, including musicians such as Cardi B, Ed Sheeran, Ariana Grande, Concord and Secretly Canadian.

“Our investment in AWAL’s continued growth gives us another level of service to offer the independent music community,” Sony Music Group chairperson Rob Stringer said. “With their flexible solutions to building artist careers, together we will offer creators more exciting choices to connect with their audience worldwide.”

The Orchard CEO Brad Navin said: “The Orchard’s comprehensive offerings, global footprint and technology will contribute to AWAL’s continued success. We will give more artists a transparent, global solution and access to multiple touch points to release their music however they choose.”

The newly acquired platforms will jointly form a new division at Sony Music, which the company says will be improved by the technology and network of its music distribution company, The Orchard. Lonny Olinick will remain as AWAL CEO, while Ann Tausis will continue to lead the operation formerly known as KNR.

AWAL will function outside of The Orchard under the management of Sony Music, and will continue to sign, develop and market its own artists. However, SME says The Orchard will power AWAL’s operation and artists will be able to capitalise on SME and The Orchard’s global distribution network. Artists and labels working with Sony Music and The Orchard, respectively, will be able to partner with the platform formerly known as KNR.

The deal follows AWAL’s big announcement in August that hundreds of its artists made more than $100 000 in annual streaming revenue, a 40% year-on-year increase.