Reports: Kobalt Music Group Considering Sale?

For Sale?

According to reports in BLOOMBERG and MUSIC BUSINESS WORLDWIDE, "rumors are swirling" that KOBALT MUSIC GROUP might be considering a sale or perhaps another round of financing. 

According to BLOOMBERG, citing industry sources, the firm is exploring “strategic options including a potential sale”.

KOBALT MUSIC GROUP LTD is the operating company of KOBALT, serving as both a global publisher for songwriters, and a distribution and services provider for artists (AWAL).

KOBALT MUSIC GROUP also runs a neighboring rights division and manages a fund, KOBALT CAPITAL LTD., which acquired SONGS MUSIC PUBLISHING for approximately $160m in 2017.

BLOOMBERG says that KOBALT’s potential buyers could include the three major music companies, as well as private equity and technology companies, with a price tag that could hit more than $1 billion.

One source suggested the company could choose to raise additional capital instead. 

A Kobalt spokesperson told MUSIC BUSINESS WORLDWIDE: .“We’re always evaluating the best capital structure for the business to make sure we have the right capital partners to continue to build and grow the world’s best independent company for artists and songwriters.”

SIR PAUL McCARTNEY and MAX MARTIN are among the minority shareholders in KOBALT, whose backers include HEARST ENTERTAINMENT and MICHAEL DELL’s MSD CAPITAL LP.

« see more Net News