Tribune Buys Gracenote From Sony

THE WALL STREET JOURNAL

MEDIA & MARKETING

Media Company Paying $170 Million for Service That Identifies Music, Video

By 

DON CLARK

Updated Dec. 23, 2013 12:55 p.m. ET

Tribune Co. said it will buy Sony Corp.'s Gracenote Inc. subsidiary for $170 million, a move to unite businesses that supply entertainment data.

The Chicago-based media company said Gracenote will be combined with Tribune Media Services, which sells TV listings to cable operators and other customers, as well as movie show times and other data.

Gracenote, based in Emeryville, Calif., was purchased by Sony in 2008 for $260 million. It is best known for a large database of music data that is used by music services such as Apple Inc. 's iTunes to identify tracks. But Gracenote has moved into other areas, including technology that helps smartphones and tablets identify movie and TV programs by analyzing program dialogue and soundtracks.

Tribune Chief Executive Peter Liguori, in prepared remarks, said the company is focused on extending its "core competencies" and boosting innovation and growth. Bringing together Gracenote with Tribune Media Services will create one of the largest entertainment metadata companies in the world, he said.

The deal comes as Tribune, which owns newspapers such as the Chicago Tribune and Los Angeles Times, has announced plans to spin off its newspaper assets. It also has moved to boost its TV operations with a $2.73 billion deal to buy stations from Local TV Holdings LLC.

Sony, in a separate news release, said it expects to record a $60 million gain on the sale, which it included in a Oct. 31 forecast issued for the fiscal year ending March 31, 2014. The company had previously announced write-downs on the value of the Gracenote assets. Sony said it expects the deal to close prior to March 31, subject to certain regulatory approvals.

The Japanese company's chief executive, Kazuo Hirai, has moved to cut costs and increase its focus on products including televisions and its PlayStation videogame console.

Gracenote, whose technology is also used in mobile apps and in cars, said being part of Tribune Media Services fits its own long-range plans. Stephen White, its chief executive, said in prepared remarks that the combination will help "reimagine" how people discover and connect with music and video content across multiple devices.