Sony Music
Second-largest record company, owned by Sony Group Corporation.
Sony Music Entertainment (SME), an American company owned by Japan’s Sony Group Corporation, operates as the recording arm of the Sony Music Group. Its counterpart in that group is the publishing division, Sony Music Publishing. The company began in 1929 as the American Record Corporation, formed through the merger of several record companies. Nine years later, the Columbia Broadcasting System acquired it and renamed it the Columbia Recording Corporation. Under the leadership of Edward Wallerstein, the company became a dominant force in the industry by championing the introduction of the LP record. In 1966, it was restructured and became CBS Records. Sony purchased the company in 1988 for US$2 billion, and changed its name to Sony Music Entertainment in 1991, fulfilling the terms of the buyout which only allowed a temporary license for the CBS trademark. A 50–50 joint venture with Bertelsmann, called Sony BMG, was formed in 2004 to combine Sony Music and Bertelsmann Music Group (BMG). Sony bought out Bertelsmann’s share in 2008 and brought back the 1991 name. This buyout led to the consolidation of former BMG labels, including Arista, Jive, LaFace, and J Records, into RCA Records in 2011, and prompted the relaunch of BMG as BMG Rights Management. In 2019, Sony merged SME with its publishing arm, Sony/ATV, to create the Sony Music Group. Today, Sony Music Entertainment is the second largest of the “Big Three” record companies, valued at $25 billion, behind Universal Music Group and ahead of Warner Music Group. Its sibling division, Sony Music Publishing, is the world’s largest music publisher.
- field
- Recorded music
- nationality
- American (Japanese-owned)
- known_for
- Being the second-largest record company in the world; home to Columbia, Epic, an
- valuation_2026
- $25 billion
- parent
- Sony Group Corporation
Verified Timeline
Lore & Background
Sony Music Entertainment, commonly known as Sony Music, is an American, Japanese-owned multinational music company and the recording division of the Sony Music Group. It is the second largest of the "Big Three" record companies, valued at $25 billion, behind Universal Music Group and ahead of Warner Music Group. The company originated in 1929 as the American Record Corporation, formed through a merger of several record companies. After being acquired by the Columbia Broadcasting System in 1938, it was renamed the Columbia Recording Corporation and later CBS Records in 1966. Sony purchased the company in 1988 for $2 billion and renamed it Sony Music Entertainment in 1991. From 2004 to 2008, it operated as a 50–50 joint venture with Bertelsmann called Sony BMG, after which Sony bought out Bertelsmann’s stake and reverted to the 1991 name. This buyout led to the consolidation of former BMG labels—including Arista, Jive, LaFace, and J Records—into RCA Records in 2011. Arista and Jive were later revived in 2018 and 2026, respectively. On August 1, 2019, Sony Music Entertainment merged with its publishing arm, Sony/ATV, to form the Sony Music Group. Its music publishing division, Sony Music Publishing, is the largest music publisher in the world.
Reader's Guide
Sony Music Entertainment's significance lies in its long history as a dominant force in the recorded music industry, evolving from the American Record Corporation through the CBS era to its current status as a global major. Its acquisition by Sony in 1988 marked a pivotal shift, bringing Japanese ownership to a cornerstone of American music. The 2004 joint venture with Bertelsmann created Sony BMG, uniting historic labels like Columbia, Epic, and RCA Records. As of 2026, Sony Music Entertainment is valued at $25 billion, second only to Universal Music Group, and its publishing division is the world's largest. The company's legacy includes pioneering the LP record, the compact disc, and managing iconic artists across decades.
Did You Know?
- Sony Music Entertainment is the second largest of the 'Big Three' record companies, with a valuation of $25 billion as of 2026.
- On August 1, 2019, Sony Music Entertainment merged with music publishing arm Sony/ATV to form the Sony Music Group.
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