Universal Music Group (UMG), the world’s foremost music company, has declared its acquisition of a majority stake in Mavin Global, a prominent independent record label.
The announcement came in a statement released by UMG on Monday, indicating that the transaction is pending regulatory approval.
UMG stated, “We are excited to announce a majority investment in Mavin Global (Mavin), one of the world’s most vibrant and innovative independent record labels. The deal is subject to regulatory clearance and is anticipated to be finalized by the end of Q3 2024.”
As reported by Billboard on October 6, 2023, Mavin Records was exploring external investment options, aiming for either a partial acquisition or a complete sale. The estimated value of the investment or sale ranges between $125 million and could escalate to $150 million or $200 million.
UMG highlighted that Mavin’s comprehensive services in Nigeria will be enhanced through UMG’s expansive network of labels and enterprises, while retaining autonomy over its strategic direction and talent development.
Under the terms of the agreement, Michael Collins Ajereh, known as Don Jazzy, Founder and CEO of Mavin Global, along with Chief Operating Officer (COO) Tega Oghenejobo, will continue to lead the company. This collaboration offers UMG the opportunity to work with established local executives and experienced A&R professionals.
While the statement did not disclose the financial terms of the acquisition, it confirmed TPG Records’ complete divestment from the business, while Kupanda Capital will maintain a minority stake and serve as a strategic advisor.
Don Jazzy expressed his sentiments on the acquisition, stating, “I am proud of the artists, careers, and brand we’ve cultivated, making Mavin the influential force it is today. Through this landmark partnership with UMG, we will uphold our mission in Africa and worldwide.”
Sir Lucian Grainge, Chairman & CEO of Universal Music Group, emphasized, “Our criteria for identifying partners is simple: exceptional artists, entrepreneurs, and individuals. With Don Jazzy, Tega, the Mavin Global team, and their artist roster, we have found the perfect collaborators to grow together.”
Grainge continued, “Mavin’s talented artists have played a pivotal role in elevating Afrobeats into a global phenomenon, and we are delighted to welcome them into the Universal Music Group family.”
