Shearman & Sterling has assisted Dada S.p.A. in the execution of a strategic agreement with Sony Music Entertainment which further strengthens their partnership.

Sony Music is acquiring a 13% equity interest in Dada.net S.p.A., Dada Group’s mobile music operating company, by contributing its stake in Dada Entertainment LLC, the U.S.-based mobile entertainment joint venture between the two companies. Shearman & Sterling had previously advised Dada on the formation of Dada Entertainment LLC. In connection with the contribution, Dada.net granted certain “put and call” option and governance rights relating to Sony Music’s stake in Dada.net.

In addition, Sony Music and Dada have signed a broader international content distribution agreement. This will enable Dada to offer a wider selection of products and services featuring content from Sony Music artists in more countries through its web and mobile channels.

Dada S.p.A. is an international leader in community and entertainment services via the Web and mobile devices, as well as in domain, hosting and advanced online advertising solutions. Dada is listed on the MTA market of Borsa Italiana in the STAR segment.

The Shearman & Sterling team acting on this transaction was led by partner Tobia Croff (Rome-Mergers & Acquisitions).