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FRONTLINE world music-based entertainment company, Universal Music Group (UMG), has finalized the acquisition of a majority investment stake in the Nigerian record label, Mavin Records.
UMG disclosed the acquisition in a statement issued on Monday, February 26. It stated that the deal, which is subject to regulatory approval, is anticipated to conclude by the end of the third quarter of 2024.
After the transaction’s finalisation, investment firm Kupanda Capital will retain its role as a minority investor and strategic advisor within the business. However, another investor, TPG, will completely divest its stake as part of the agreement.
As with other UMG businesses, Mavin under the terms of the agreement, will maintain autonomy over its strategy and future talent development, while Mavin founder and CEO, Michael Collins Ajereh well known as Don Jazzy, along with the COO, Tega Oghenejobo, will continue to lead and manage the company’s operations, offering UMG the opportunity to partner with proven local executives and experienced A&R professionals.
Commenting on the development, chairman and CEO of Universal Music Group, Sir Lucian Grainge said, “Our criteria for identifying partners is straightforward: great artistes, great entrepreneurs, great people. With Don Jazzy, Tega, the Mavin Global team and their artiste roster, we’ve found ideal partners with whom to grow together.”
“Mavin’s brilliant artistes have been catalysts in the transformation of Afrobeats into a global phenomenon and we’re thrilled to welcome them into the Universal Music Group family,” he added.
Don Jazzy expressed satisfaction: “I’m proud of the artistes, careers and brand we’ve built that have made Mavin the force it is today. In this historic partnership with UMG, we will continue that mission in Africa and across the globe.”
According to Oghenejobo: ” With our proven history of collaborations within the UMG family, we have a strong belief that they are the ideal partner for the next phase of our growth, given the diversity and potential of our business.”
“UMG is home to some of the world’s foremost music entrepreneurs and artists, making them a perfect match for our aspirations. By collaborating with UMG, we are dedicated to cultivating a vibrant creative environment that propels African music to new heights on the global stage,” he added.
Recall that last year October, it was reported that the Lagos-based record label, which is the driving force behind many of the continent’s Afrobeats artistes, “is seeking investment or eying a potential full sale with bidding coming from the Universal Music Group, HYBE and strong interest from music asset investors in the financial sector.”
Affirming the viral report, Don Jazzy in a podcast interview in January said the label he founded in 2012, was being courted by foreign investors. It is noteworthy to know that Mavin has played a pioneering role in breaking Afrobeats artistes within Africa, and beyond.
It is hoped that the partnership with UMG will accelerate Mavin’s strategic advancement and create more opportunities to break more talent globally, expand the reach of its existing roster and continue building its business into a super-serving, pan-African entertainment company.
“This mission is anchored in two initiatives: Mavin’s Artiste Academy, which trains new talent in music and performance skills and builds connections within the roster, and their executive leadership program, which seeks to develop the next generation of music industry talent in Africa.
“The Mavin team’s full-service offering in Nigeria will be amplified through UMG’s global network of labels and businesses by the investment. Currently distributed internationally [ex-Africa] through Virgin Music Group with Rema, Mavin and its roster are already well integrated into UMG’s unrivalled network, with multiple signings across U.S. labels, including Republic partnering for Ayra Starr, and Interscope for Lifesize Teddy,” part of the statement issued by UMG on Monday over the acquisition read.
As a multi award-winning label, Mavin has enjoyed rapid growth, alongside commercial success – contributing to the rise of Afrobeats. It is home to a number of accomplished artistes including Ayra Starr, Ladipoe, Johnny Drille, Crayon, Magixx, Bayanni, Boy Spyce, DJ Big N, Lifesize Teddy and Rema, whose hit single “Calm Down” featuring Selena Gomez rose to Number 3 on the U.S. Billboard Hot 100 chart in a breakthrough for the genre.
The track has gone on to become the biggest Afrobeats song of all time, the most viewed video of all time by an African artiste on YouTube, and the first African artiste-led track to surpass one billion Spotify streams.
The Mavin team’s full-service offering in Nigeria will be amplified through UMG’s global network of labels and businesses by the investment. Currently distributed internationally [ex-Africa] through Virgin Music Group with Rema, Mavin and its roster are already well integrated into UMG’s unrivalled network, with multiple signings across U.S. labels, including Republic partnering for Ayra Starr, and Interscope for Lifesize Teddy.
Ayra Starr’s track “Rush” was nominated for the inaugural Best African Music Performance Grammy and its music video is the most viewed music video by a female Nigerian artist on YouTube.
