Primary Wave‘s ten-figure acquisition of Kobalt is one of the music biz’s biggest stories of the year.
Last we heard, back in March, the two parties had entered into a definitive agreement, subject to customary conditions; the transaction was expected to be finalized in Q3 2026.
Just seven days into that Q3 period… it’s closed.
MBW sources close to the deal have confirmed that the acquisition closed on Tuesday (July 7) after passing all relevant regulatory scrutiny.
Deal size: around $1.5 billion. Money wired. Done.
The transaction sees Primary Wave Music acquire Kobalt‘s worldwide operations, its catalog of owned copyrights, and its digital collection society amra, from private equity firm Francisco Partners.
The deal includes an investment from Brookfield, a strategic partner to Primary Wave.
Goldman Sachs & Co. LLC served as financial advisor to Francisco Partners on the transaction.
Under Primary Wave’s ownership, Kobalt will continue to operate as a standalone company under the leadership of CEO Laurent Hubert and its current management team.
Announcing the agreement in March, Primary Wave CEO and Founder Larry Mestel said: “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,” added Mestel.
Kobalt CEO Laurent Hubert said: “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,” Hubert continued. “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.”
Francisco Partners acquired a 90% controlling stake in Kobalt in 2022, in a deal that valued the company at approximately $750 million.
The remaining shares were held by founder Willard Ahdritz, Matt Pincus‘s MUSIC, and Dundee Partners.
Under Francisco Partners’ ownership, Kobalt grew revenue to $794.4 million in the year ending June 2024 and launched a $700 million-plus rights acquisition joint venture with Morgan Stanley.
Kobalt previously sold recorded music arm AWAL and its neighboring rights business to Sony Music for $430 million in 2021.
Primary Wave closed its fourth flagship music fund at $2.225 billion in April, exceeding its $2 billion hard cap.
The fund was backed by a global investor base spanning insurance companies, pension funds, endowments, and large family offices, said the firm.
Brookfield, a co-investor in the Kobalt transaction, has been a strategic partner to Primary Wave since 2022, when it struck a $2 billion deal to fund the publisher’s music rights acquisitions.
The completed acquisition lands amid a wave of consolidation among independent music companies, with BMG also reported to be in discussions to acquire Concord in a separate transaction valued at up to $7 billion.Music Business Worldwide