Kobalt CEO, Laurent Hubert, and Primary Wave founder, Larry Mestel
Primary Wave Music has announced a definitive agreement to acquire Kobalt, which it describes as “one of the world’s premier independent music publishing and technology platforms”.
The transaction includes an investment from Brookfield, a strategic partner to Primary Wave.
According to the companies, the “deal creates a scaled, independent alternative to traditional publishing models, highlighting Kobalt’s best-in-class royalty platform, amra’s global digital collection vehicle, and Primary Wave’s proven ability to grow the value of legendary music IP through creative marketing and other initiatives”.
A press release said on Monday (March 23) that the agreement will see Kobalt, under the continued leadership of [Kobalt CEO] Laurent Hubert and its current management team, remain a “separate, stand-alone entity with a distinct mission: to be the industry’s premier tech-driven publishing administrator and creative partner, maintaining its unwavering ‘creator first’ philosophy and commitment to service, transparency and innovation”.
The deal encompasses Kobalt’s worldwide operations, its catalog of owned copyrights, and amra (its digital collection operation). The transaction is subject to customary closing conditions and is expected to close in Q3 2026.
“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,” said Larry Mestel, CEO & Founder, Primary Wave Music.
He continued: “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.”
“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.”
Larry Mestel
Laurent Hubert, CEO of Kobalt, added: “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. 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.”
“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.”
Laurent Hubert
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.”
“Our partnership with Kobalt has been defined by a shared commitment to innovation and the success of the independent creator,” added Mario Razzini, Partner at Francisco Partners.
“Our partnership with Kobalt has been defined by a shared commitment to innovation and the success of the independent creator.”
Mario Razzini, Francisco Partners
Added Razzini: “Over the last few years, we have worked closely with Laurent and the team to scale Kobalt’s 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’s continued evolution as a transformative force in the music industry.”
Upon the close of the deal, Kobalt Founder Willard Ahdritz will step down from his role as Chairman of the Board.
Ahdritz commented: “Twenty-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.”
“Primary Wave is the right home for Kobalt’s next chapter, and I step down as Chairman feeling confident about the future of the business, its people, and its mission.”
Willard Ahdritz
He continued: “First as Group CEO for 20 years and then as Chairman for five — 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.
“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.
“Primary Wave is the right home for Kobalt’s next chapter, and I step down as Chairman feeling confident about the future of the business, its people, and its mission.”
Goldman Sachs & Co. LLC served as financial advisor.
It was first reported in February 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 for approximately $750 million.
The transaction, which remains subject to customary regulatory approvals, was also confirmed in a letter sent to Kobalt clients on Monday, obtained by MBW.
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 — led by CEO Laurent Hubert — staying in place.
“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.”
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 to fund music rights acquisitions.
The combined entity would bring together Primary Wave’s multibillion-dollar portfolio of iconic catalog stakes — spanning rights in the music of Prince, Whitney Houston, Bob Marley, Stevie Nicks and Britney Spears — with Kobalt’s global publishing administration platform, its digital collection society amra, and the recently launched rights management service KOSIGN.
With Primary Wave valued in the region of $6 billion, the consolidated company could control assets exceeding $7 billion, according to Billboard estimates.
You can read the letter from Laurent Hubert to Kobalt clients in full below:
Dear Kobalt Clients,
I am writing to share significant news regarding the future of Kobalt. Today, we are announcing a sales transaction to Primary Wave & Brookfield that marks an important moment in our journey—one designed specifically to empower our mission and strengthen the support we provide to you. Please note that the closing of this transaction is subject to customary regulatory approvals.
As we move into this next chapter, I want to be clear about what this means for the company and our clients:
Independence and Continuity: This transaction is structured to ensure that Kobalt remains an independent company. Our current management team stays in place, so that the vision and leadership you have trusted remain steadfast.
The Evolution of Our Service: This is not a change in direction, but rather a continuation of our evolution. Our goal is to make sure that Kobalt remains best prepared to scale our technology and services, allowing us to serve your needs more effectively.
A Shared Philosophy: It was vital to us that our new partners truly understand the independent nature of our business. They respect our heritage and everything Kobalt stands for. Most importantly, they recognize our role as a champion for creators and an agent of change committed to the betterment of the music industry.
Our commitment to transparency and putting creators first remains at the core of everything we do. We are energized by this opportunity. Thank you for your continued trust and for being part of the Kobalt family.
