Sony Corp (6758.T) said on Tuesday it would pay about $2.3 billion to gain control of EMI, becoming the world’s biggest music publisher in an industry that has found new life in streaming services.
The acquisition, which gives Sony a catalogue of more than 2 million songs from artists such as Kanye West, Sam Smith and Sia, is the biggest so far by new CEO Kenichiro Yoshida.
The deal seeks to take advantage of the rapid growth in streaming music services like Spotify (SPOT.N) and Apple Music (AAPL.O) which has driven a recovery in the music industry.
It also fits in with Yoshida’s mission to make revenue streams more stable after his predecessor engineered a major turnaround that shifted the firm’s focus away from low-margin consumer electronics to entertainment content and image sensors.
“This investment in content intellectual property is a key stepping stone for our long-term growth,” he told a news conference.