Sony Music Agrees to Acquire Kobalt’s AWAL Services Business

Sony Music Entertainment Inc. agreed to purchase a pair of businesses from Kobalt Music Group Ltd., a leader in distributing music online, adding two tools it can offer to artists and accelerating the dismantling of one of its competitors.

Sony Music is buying AWAL, which distributes music for artists online without taking ownership of their copyrights. It’s also acquiring a Kobalt business that collects royalties for performers. Financial terms weren’t disclosed.

Kobalt previously touted AWAL as an example of how it was reinventing the music industry. But Kobalt hired strategy advisers to review its options and is now selling ...