Kobalt Music Group sold for a total of $1.2 billion to US-based Francisco Partners
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Kobalt has confirmed that Francisco Partners (FP) is acquiring a majority stake in its business.
Francisco Partners (FP) is a private equity company focused on investmenting in technology-enabled businesses such as Kobalt.
FP’s controlling stake in Kobalt will equate to around 90% of the music company.
Furthermore, two new co-investors will each acquire minority stakes in Kobalt.
- Matt Pincus’s MUSIC.
- Dundee Partners.
(Pincus will join the Board of Kobalt post the deal closing.
Willard Ahdritz, Kobalt’s founder, will keep a minority stake in Kobalt.
Francisco Partners’ buyout of Kobalt is worth approximately $750 million.
But this sale only includes Kobalt’s assets as they stand today: Kobalt Music Publishing and its global digital collection society AMRA.
However, last year Sony Music bought two businesses from Kobalt Music Group for a total of $430 million. These included recorded music platforms AWAL and Kobalt Neighbouring Rights.
Therefore Kobalt Music Group’s assets have been sold for a total of $1.2 billion.
After the sale of AWAL and Kobalt Neighbouring Rights, Kobalt Music Group began to focus more on Kobalt Music Publishing and AMRA.
Moreover, after the Francisco Partners deal, Willard Ahdritz is set to remain as Kobalt’s Chairman. And the company’s team of executives will remain as it did before the FB deal – Laurent Hubert (CEO), Jeannette Perez (President and COO), Catrin Drabble (CFO), and Nuno Guerreiro (CTO) will all retain their positions.
Kobalt has been an agent of change and innovator for the past 20 years, and as a result, we have built an extraordinary brand and creative destination for the best creators in the world. We look forward to working with Francisco Partners to embark on Kobalt’s next innovation chapter.
Kobalt CEO, Laurent Hubert
Kobalt has said that FP’s investment will “support furthering AMRA, enriching Kobalt’s technology innovation, and expanding Kobalt’s footprint as the leading independent global music publisher” in a press release.
Last year, Francisco Partners also acquired Native Instruments for an undisclosed fee.