Independent No More: Sony Buys the Rest of The Orchard

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Back in 2010, Dimensional Associates acquired independent distributor The Orchard.

In 2012 Sony bought a majority of The Orchard.  An exact percentage wasn’t disclosed, but Sony was believed to have purchased about 51 percent.  Dimensional Associates owned the rest of the company.

Now, Billboard reports that Sony is paying around $200 million to buy Dimensional Associates’ stake. The deal still needs government approval, but is expected to close after March of this year.

Billboard estimates that The Orchard makes $200 million a year.

 

Nina Ulloa covers breaking news, tech, and more. Follow her on Twitter: @nine_u

Image by Dave Rutt, licensed under Creative Commons Attribution 2.0 Generic (CC BY 2.0).

7 Responses

  1. Remi Swierczek

    Déjà vu?
    In 2008 very smart men at Sony paid $260M for Gracenote music ID service. Then, looks like, they have forgotten the reason they got it for. So recently they have sold it to Tribune Media for $170M.

    This time not so smart men at Sony think that they have got for $200M control of YouTube juice extractor!

    Well, there is not much juice or fruits for music industry inside of YouTube. I predict divestment for less than $100M within five years as the industry drifts fro insanity to logic.

  2. Sherman

    Gracenote sucked. (Or not so smart..) Based on fans inputting the data by title and artist. Then came fingerprinting, that was inaccurate, as it could not differentiate interpretations of music. New companies like cugate.com can collect emotional data, moods, actual music etc. and monitor what is played where and when on i.e. the radio (worldwide) ! That can also reveal where Youtube hijacks peoples music for advertising, or where publishers miss out on plays. That’s where Sony should have invested.
    Orchard is still on top, but how long ? That business model is outdated.

      • Anonymous

        No Sony merged IODA with the Orchard after the full purchase then laid off 90% of the IODA staff. Let’s watch what they do next!

  3. spasibo777

    Or it could be that Dimensional Associates, a hedge fund, decided that it was the best time to cash out. And if the deal isn’t finished, how can a final price be ultimately established?

  4. Anonny Mouse

    Orchard currently pays out me and mine 80% of gross collections, which beats any other outlet.
    As long as they keep that, they can keep our business.