Primary Wave to Acquire Kobalt in $1.5B+ Deal

Primary Wave Music reached a definitive agreement to purchase Kobalt from Francisco Partners, which had acquired a 90% controlling stake in Kobalt for around $750 million in 2022. The transaction incorporates an investment from Brookfield, Primary Wave's strategic partner since 2022, and covers Kobalt's global operations, owned copyrights catalog, and AMRA digital collection service. Kobalt will operate as a standalone entity led by CEO Laurent Hubert and its existing management team, focusing on technology-driven publishing administration. The deal awaits customary regulatory approvals and is projected to close in the third quarter of 2026.

Kobalt has demonstrated strong growth under Francisco Partners, achieving $794.4 million in revenue for the year ending June 2024 and initiating a joint venture with Morgan Stanley for over $700 million in rights acquisitions. Reports estimate the sale values Kobalt at more than $1.5 billion, roughly doubling Francisco Partners' initial investment and signaling a profitable exit. This acquisition merges Kobalt's royalty platform and AMRA with Primary Wave's extensive portfolio of iconic music rights from artists like Prince, Bob Marley, and Whitney Houston, potentially overseeing assets beyond $7 billion given Primary Wave's $6 billion valuation.

The combination establishes a larger independent player in music publishing, contrasting traditional models by emphasizing creator-focused technology, transparency, and marketing to enhance IP value. Kobalt serves over 1 million songs from major songwriters and holds significant shares of top US and UK charts. Amid industry consolidation, including potential BMG-Concord talks valued up to $7 billion, this move bolsters the independent sector's scale and capabilities.