Sony Music's Thread Shop Merch Agency Expands With Acquisition of The Araca Group's Division

the araca group
Courtesy of The Araca Group


Sony Music Entertainment's leading music merch division, The Thread Shop, has reached a deal to acquire the music merch department of The Araca Group.

The New York-based Araca Group, a theatrical production company as well as Broadway, TV and film merchandising agency, has catered to the likes of Led Zeppelin, P!nk, Shania Twain, Sugarland and Zayn. That roster now migrates to The Thread Shop, which counts Bob Dylan, Maluma, Joan Jett and now Lil Nas X among its own artist partners.

Sony Music Entertainment president, commercial group Richard Story said in a press release that the move reflects the growing music merchandise industry -- a potentially lucrative extra revenue stream for artists. 

“As artists continue to seek out merchandising opportunities to complement their music revenues, branding, and marketing, Sony Music is significantly expanding its presence in this growing area of the business under the leadership of Howard Lau," Story said. "The acquisition of The Araca Group’s music merchandise division will further strengthen The Thread Shop’s artist roster and infrastructure and the competitive capabilities we offer to the music community.”

With Sony's acquisition, several members of The Araca Group's music merch team will move over to The Thread Shop.

“We are thrilled at the opportunity this acquisition provides for our music merchandise division," added The Araca Group CEO Michael Rego. "The team at The Thread Shop is artist-focused, passionate and well positioned to build upon the merchandising programs that Araca has created for our music clients.”

Sony isn't the only major label eyeing merch as a way to cull extra cash. Back in January, Universal Music Group’s merchandising arm Bravado acquired its competitor Epic Rights; three months earlier, Warner Music Group completed its acquisition of German merch company EMP.