December 23, 2013
Sony is selling its music data business Gracenote for $170 million to Tribune Co. as the electronics giant pars down its holdings to focus on devices.
Although Sony shelled out $260 million for Gracenote in 2008, the firm said in a press release today that it expects the sale to add $60 million to its operating income. The deal is expected to close within the first quarter of 2014.
Tribune, a Chicago-based multi-media company, will combine Gracenote with its Tribune Media Services (TMS). Joining Gracenote with TMS will bring together the largest source of music data in the world with the top provider of television and movie metadata.
“This transaction extends and complements TMS’ best-in-class core competency in the metadata business, while also deepening Tribune’s slate of subscription services,” said Tribune CEO Peter Liguori in a press release.
Gracenote offers metadata for more than 180 million tracks and powers more than one billion Smartphones and tablets, in addition to Internet streaming music services.
“Gracenote and TMS are an ideal fit,” added TMS president Shashi Seth. “Both companies have substantial digital footprints and are well-respected leaders in their areas globally. Together we will become an even greater force in the global entertainment data business by servicing new and existing customers with better data, new products, and new services to help an evolving entertainment industry.”