What's Going On With Sony Stock On Thursday?

Author: Anusuya Lahiri | May 30, 2024 09:14am

Sony Group Corp’s (NYSE:SONY) Sony Music is negotiating to acquire Queen’s music catalog, including hits like “Bohemian Rhapsody,” potentially making it one of the largest deals of its kind.

The purchase, possibly totaling $1 billion, involves another investor and the talks are ongoing, according to a Bloomberg report. The stock is trading higher on Thursday.

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Music catalog sales have been rising, with artists fetching significant sums. Sony previously acquired a stake in Michael Jackson’s catalog for at least $600 million and bought Bob Dylan’s recordings in 2022.

Queen’s catalog features major hits and generated £40.9 million ($52 million) in revenue for the year ending September 30, 2022.

The value of music catalogs has surged due to streaming growth and low interest rates.

Earlier in May, Sony reported fiscal fourth-quarter 2023 sales growth of 14% year-on-year to $23.49 billion, beating the analyst consensus of $19.20 billion. EPS of $1.04 beat the analyst consensus of $0.79. 

Music revenue rose 23% Y/Y, and operating income increased by 17.9% Y/Y.

Sony held 2.31 trillion Japanese yen in cash and equivalents as of March 31, 2024.

Sony stock lost 4% in the last 12 months. Investors can gain exposure to the stock via BlackRock Large Cap Core ETF (NASDAQ:BLCR) and Calamos ETF Trust Calamos Antetokounmpo Global Sustainable Equities ETF (NYSE:SROI).

Price Action: SONY shares traded higher by 2.61% at $80.50 premarket at the last check Thursday.

Also Read: Sony To Launch PlayStation Mobile Games Platform, Job Listing Reveals

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by David Pimborough via Shutterstock

Posted In: BLCR SONY SROI