According to the companies, the “deal creates a scaled, independent alternative to traditional publishing models, highlighting Kobalt\u2019s best-in-class royalty platform, amra\u2019s global digital collection vehicle, and Primary Wave\u2019s proven ability to grow the value of legendary music IP through creative marketing and other initiatives”.<\/p>\n
A press release said on Monday (March 23) that the agreement will see Kobalt, under the continued leadership of [Kobalt CEO] Laurent Hubert<\/strong> and its current management team, remain a “separate, stand-alone entity with a distinct mission: to be the industry\u2019s premier tech-driven publishing administrator and creative partner, maintaining its unwavering ‘creator first’ philosophy and commitment to service, transparency and innovation”.<\/p>\n The deal encompasses Kobalt\u2019s<\/strong> worldwide operations, its catalog of owned copyrights<\/strong>, and\u00a0amra<\/strong>\u00a0(its digital collection operation). The transaction is subject to customary closing conditions and is expected to close in Q3 2026.<\/p>\n \u201cOver 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,\u201d said Larry Mestel<\/strong>, CEO & Founder, Primary Wave Music.<\/p>\n He continued: \u201cThis 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.\u201d<\/p>\n \u201cThis 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.\u201d<\/p>\n Larry Mestel<\/span><\/p>\n<\/blockquote>\n Laurent Hubert<\/strong>, CEO of Kobalt, added: \u201cPrimary Wave understands our vision of independence and the importance of our \u2018creator first\u2019 mindset driven by service, technology, and creativity. We are incredibly excited about our next chapter with them as our partner. Larry and the Primary Wave team are true champions of the music community, and their support underscores the value of the independent ecosystem we are all building.”<\/p>\n “Our clients can remain confident that our mission and leadership remain entirely focused on their success. We thank our founder Willard Ahdritz, Francisco Partners and Matt Pincus for their incredible partnership over the last few years, which has positioned us perfectly for this next chapter.\u201d<\/p>\n Laurent Hubert<\/span><\/p>\n<\/blockquote>\n Added Hubert: “Our clients can remain confident that our mission and leadership remain entirely focused on their success. We thank our founder Willard Ahdritz, Francisco Partners and Matt Pincus for their incredible partnership over the last few years, which has positioned us perfectly for this next chapter.\u201d<\/p>\n \u201cOur partnership with Kobalt has been defined by a shared commitment to innovation and the success of the independent creator,\u201d added Mario Razzini<\/strong>, Partner at Francisco Partners.<\/p>\n Mario Razzini, Francisco Partners<\/span><\/p>\n<\/blockquote>\n Added Razzini: \u201cOver the last few years, we have worked closely with Laurent and the team to scale Kobalt\u2019s industry-leading technology and expand its global footprint. We are proud of what we have achieved together and believe Primary Wave is the ideal partner to support Kobalt\u2019s continued evolution as a transformative force in the music industry.\u201d<\/p>\n Upon the close of the deal, Kobalt Founder Willard Ahdritz<\/strong> will step down from his role as Chairman of the Board.<\/p>\n Ahdritz commented: \u201cTwenty-five years ago, I founded Kobalt with a clear vision: creators deserved better, and the digital music industry needed the technology, scale, and transparency of a modern tech company. We succeeded, empowering songwriters and creators to retain their rights, and helping establish music royalties as a recognized asset class along the way.\u201d<\/p>\n Willard Ahdritz<\/span><\/p>\n<\/blockquote>\n He continued: \u201cFirst as Group CEO for 20 years and then as Chairman for five \u2014 I have had the privilege of working alongside extraordinary people across two generations of leadership and more than 900 colleagues, all united by our mission.<\/p>\n “I am deeply proud of what we built together and thank Laurent, Jeannette Perez, Tomas Ericsson and Catrin Drabble, and the rest of our outstanding team for their leadership and dedication.<\/p>\n “Primary Wave is the right home for Kobalt\u2019s next chapter, and I step down as Chairman feeling confident about the future of the business, its people, and its mission.\u201d<\/p>\n Goldman Sachs & Co. LLC served as financial advisor.<\/p>\n It was first reported in February<\/a> that Primary Wave was in advanced talks to potentially acquire Kobalt, having emerged as the sole remaining bidder in negotiations with Francisco Partners, which acquired a 90% controlling stake in Kobalt in 2022<\/a> for approximately $750 million.<\/p>\n The transaction, which remains subject to customary regulatory approvals, was also confirmed in a letter sent to Kobalt clients on Monday, obtained by MBW.<\/p>\n In the client letter, Kobalt’s leadership stressed that the transaction is structured to ensure the company remains independently operated, with the current management team \u2014 led by CEO Laurent Hubert \u2014 staying in place.<\/p>\n “This is not a change in direction, but rather a continuation of our evolution,” Hubert stated in the letter, adding that the deal is designed to help Kobalt scale its technology and services. “It was vital to us that our new partners truly understand the independent nature of our business.”<\/p>\n The confirmation of Brookfield as a named co-acquirer alongside Primary Wave is notable. The two companies have been partners since 2022, when Brookfield struck a $2 billion deal with Primary Wave<\/a> to fund music rights acquisitions.<\/p>\n The combined entity would bring together Primary Wave’s multibillion-dollar portfolio of iconic catalog stakes \u2014 spanning rights in the music of Prince, Whitney Houston, Bob Marley, Stevie Nicks and Britney Spears \u2014 with Kobalt’s global publishing administration platform, its digital collection society amra, and the recently launched rights management service KOSIGN.<\/p>\n With Primary Wave valued in the region of $6 billion, the consolidated company could control assets exceeding $7 billion, according to Billboard<\/em> estimates<\/a>.<\/p>\n For Francisco Partners, the sale could represent a swift and lucrative exit. Billboard<\/em> reported<\/a> that the deal could value Kobalt at north of $1.5 billion \u2014 approximately double the $750 million valuation at which FP acquired the company in 2022. Under FP’s ownership, Kobalt grew revenue to $794.4 million in the year ending June 2024<\/a>, and launched a $700 million-plus rights acquisition joint venture with Morgan Stanley<\/a>.<\/p>\n\n
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![](\"https:\/\/www.musicbusinessworldwide.com\/files\/2026\/03\/Screenshot-2026-03-23-at-13.17.44.jpg\")
<\/i><\/a><\/figure>\u201cOur partnership with Kobalt has been defined by a shared commitment to innovation and the success of the independent creator.\u201d<\/p>\n\n
<\/i><\/a><\/figure>“Primary Wave is the right home for Kobalt\u2019s next chapter, and I step down as Chairman feeling confident about the future of the business, its people, and its mission.”<\/p>\n
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