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Kobalt Music Group in talks to sell majority stake to Francisco Partners, say MBW sources


Last year was an important year for Kobalt music group. The company celebrated its 20th anniversary in 2021, and sold AWAL arrive Music by Sony – a deal that leaves Kobalt clearly focused on its core music publishing business, plus a digital collection society AMRA.

However, 2022 could be an even bigger year in the company’s story.

MBW senior sources tell us that Francisco Partners is currently in advanced talks to acquire a majority stake in Kobalt Music Group, with the possibility of a deal being signed in the next week or two.

Francisco Partners is no stranger to the music business.

San Francisco-based technology-focused investment firm buy back the majority of shares in the background of music creation Traditional instruments earlier this year, for an undisclosed fee.

With offices in San Francisco, London and New York, Francisco Partners has raised more than $24 billion in committed capital since its launch more than two decades ago. It has invested in more than 300 technology companies.

Other music-related investments made by Francisco Partners in recent years include Eventbritefinancial guarantee from the investment company up to $225 million in 2020.

MBW sources tell us that, if Francisco Partners’ majority acquisition of Kobalt Music Group is completed, Willard Ahdritz – the founder and Executive Chairman of Kobalt – will remain a shareholder of the company. music company and continue to play a leading role in the strategic future.

A source close to Kobalt’s business said: “The complete list of Kobalt shareholders today is actually quite long and a bit Byzantine. “A large acquisition by Francisco will bring clarity and stability to Kobalt’s ownership – not to mention the growth capital to accelerate AMRA’s global expansion.”

When contacted by MBW about this story today, a Kobalt spokesperson said the company “does not comment on rumors or speculation”.

According to documents filed with the Company in the United Kingdom, Kobalt Music Group’s total revenue (excluding asset management fees) in fiscal year 2021 (12 months to the end of June 2021) at 519.4 million dollars.

It’s up 11% on the same basis as $ 465.9 million it was posted last year.

Kobalt’s publishing division increased its revenue in FY2021 by 9.6% arrive $478.4 millionup from $436.1 million in the previous year.

AMRA’s annual revenue ranks first 100 million dollars for the first time in fiscal year 2021, hit $109.8 million. That’s because 40.2% Compared with the last year ($78.3 million).

Overall, in terms of total collection (including property management fees), Kobalt said it generated 548 million dollars in FY2021, increase 15% YoY.

(The total collection represents Kobalt’s overall revenue, plus the fees Kobalt receives for his role as an advisor/asset manager for music-buying funds.)


Since publishing those figures, Kobalt has told MBW that now forecast the total revenue from the company-wide collection is U.S. dollar 625 million dollars in it current fiscal year (to the end of June 2022).

Kobalt also predicts that it will end the current financial year with about $65 million in EBITDA profits.


Last year, Kobalt sold two areas of the company’s banner – AWAL and Kobalt Neighborhood Rights (KNR) – to Sony Music in a The contract is worth $430 million.

(The FY2021 figures above do not include revenue from AWAL or KNR.)

Meanwhile, Kobalt’s investment management arm, Kobalt Capital, has facilitated the sale of two music ownership funds over the past two years for a total of 1.4 billion dollars:


Based on Bloombergin the first quarter of this year, Kobalt Music Group successfully raised funds $550 million debt from JPMorgan Chase & Co. and HPS Investment Partners.

Kobalt is said to intend to use these funds to build his portfolio of music copyrights owned through the acquisition.Worldwide music business



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