Report: Primary Wave’s Kobalt Acquisition is Complete

Music Business Worldwide is reporting that Primary Wave’s ten-figure acquisition of Kobalt has closed.

Why it matters:

• The purchase brings together two of the world’s largest independent music companies.

What it means:

• Primary Wave Music acquires Kobalt’s global operations, its catalog of owned copyrights, and its digital collection society, amra, from private equity firm Francisco Partners.

• Kobalt will continue to operate as a standalone company led by CEO Laurent Hubert and its existing management team.

• The deal includes an investment from Primary Wave strategic partner Brookfield, as per Music Business Worldwide.

Major acquisition:

• The two companies entered a definitive agreement in March, and estimated the transaction would be finalized in Q3 subject to customary conditions – which is exactly as it seems to have played out.

What they said:

• Larry Mestel, CEO & Founder, Primary Wave Music (upon announcing the definitive agreement in March): “Over the many years Laurent and I have known each other, I have always been impressed by the remarkable team he has built, as well as the extraordinary growth Kobalt has experienced under his leadership. This acquisition will only enhance his efforts to provide creators individualized attention and specialized support at every stage of their journey and to provide a very significant amount of capital to Kobalt for continued growth.”

• Laurent Hubert (also in March): “Primary Wave understands our vision of independence and the importance of our ‘creator first’ mindset driven by service, technology, and creativity. We are incredibly excited about our next chapter with them as our partner.”