Universal Music Group purchases a majority stake in Mavin Global to help boost Nigerian Music globally. The deal in question is subject to regulatory approval and it is also expected to close by the end of the third quarter of 2024.
Universal Music Group Purchases Majority Stake In Mavin Global
This acquisition is poised to accelerate the growth of Nigerian music companies by opening up more opportunities to showcase talent on a global scale. Under the terms of the agreement between Universal Music Group (UMG) and Mavin, Mavin will retain autonomy in managing its strategic direction and talent development, with Don Jazzy (CEO) and Tega Oghenejobo (COO) continuing to lead the company.
Sir Lucian Grainge, CEO of UMG, expressed his enthusiasm for the partnership, citing Mavin’s outstanding team as meeting UMG’s criteria for an ideal partner. He emphasized Mavin’s role in propelling Afrobeats to a global phenomenon and welcomed them into the Universal Music Group family.
Ajereh and Oghenejobo affirmed that the collaboration with UMG will further strengthen Mavin’s commitment to fostering a vibrant creative environment that elevates African music to new heights globally.
Mavin’s Partnership with Kupanda Holdings
This development follows Mavin’s receipt of a multi-million dollar investment in 2019 from Kupanda Holdings, a partnership between pan-African investment firms Kupanda Capital and TPG Growth. With this new acquisition, TPG will exit the company, while Kupanda Capital will retain a minority stake and continue to offer strategic advice.
Mavin’s Pivotal Role in Promoting Afrobeats Artists
Founded in 2012 by Ajereh, Mavin has played a pivotal role in promoting Afrobeats artists both locally and internationally. The African music industry has witnessed significant expansion recently, presenting opportunities for diverse growth and investment. A report indicates that Africa’s annual music streaming revenues are projected to increase from $92.9 million in 2021 to $314.6 million by 2026.
International Federation of the Phonographic Industry
Furthermore, according to the International Federation of the Phonographic Industry (IFPI), recorded music revenue in sub-Saharan Africa amounted to $70.1 million in 2021, underscoring the region’s potential for further growth and development in the music industry.
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