By Taiwo Okanlawon
Dutch–American multinational music corporation, Universal Music Group has acquired a majority stake in Nigerian record label, Mavin Records.
UMG in a statement released on Monday, said the deal remains subject to regulatory approval and is expected to close by the end of Q3 2024.
Investment firm Kupanda Capital will remain a minority investor and strategic advisor in the business once the transaction closes, although another investor, TPG, will fully exit as part of the deal.
The deal will see Mavin founder and CEO Don Jazzy and COO Tega Oghenejobo continuing to run the company.
“Our criteria for identifying partners is straightforward: great artists, great entrepreneurs, great people,” UMG boss Sir Lucian Grainge said.
“With Don Jazzy, Tega, the Mavin Global team, and their artist roster, we’ve found ideal partners with whom to grow together.”
“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,” Oghenejobo said in a statement.
“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.”
Reacting to the development, Don Jazzy said the new partnership is a “milestone that recognizes our collective talent and hard work, aiming to elevate African music on the global stage.
“Our collaboration with UMG will bring more music, innovation, and opportunities, allowing us to showcase African talent worldwide. While we embark on this exciting new path, our core mission and values will remain intact, ensuring that the essence of Mavin and our commitment to pushing musical boundaries continue to thrive.
“This step forward is a testament to the dedication of our artists, staff, and, importantly, you, our fans, whose unwavering support has been instrumental in reaching this moment. Together, we look forward to making history, breaking more records, and building a lasting legacy.
“Thank you for your continued belief in us. Here’s to our bright future together,” he added.
Mavin Records is a talent hub with stars like Rema, Ayra Starr, Crayon, Ladipoe, Johnny Drille, Magixx, Bayanni, Boyspyce, DJ Big N, and Lifesize Teddy.
In October 2023, Billboard reported that Mavin Records “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, according to sources.”
They said the deal’s valuation is estimated between $125 million and $200 million.
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The report said Shot Tower Capital, an independent investment bank, facilitates the negotiation process.
In a podcast interview in January 2024, Mavin CEO, Don Jazzy confirmed and clarified that the label has had investors for five years, and they are leaving.
He jokingly likened the attraction his label gets from investors to that of a pretty lady.
He attested that investors are bidding because they possess valuable assets.
“We have investors, and they have been here for five years, so they have to go,” he said.
“If you get gold or you get diamonds, people go dey, people wey wan.
“Or if you be fine girl, people go dey approach you nau.
“Dem wan toast and as we dey like this, if you get breast, you get yansh.”
Jazzy co-founded the now-defunct record label Mo’ Hits Records in 2004 with his former business partner, Oladapo Oyebanj, a.k.a D’banj.
Following its closure, he sets up Mavin Records on 8 May, 2012.
Mavin had produced artists such as Tiwa Savage, Reekado Banks, Korede Bello, Dr SID, D’Prince, DNA Twins, and many others.
Artists under the label include Ayra Starr, Johnny Drille, Crayon, Boy Spice, Bayanni, Rema, and Ladipoe.
In 2019, Don Jazzy unveiled a newly built multimillion naira mansion tagged “Mavin Creative Studios” as Mavin Corporate Headquarters to celebrate his 37th birthday.
The label has received numerous accolades, including the MTV Africa Music Award for Best Record Label in 2013 and 2014.
Mavin Records’ artistes have also collaborated with global singers such as Beyoncé, Selena Gomez, Kelly Rowland, and Chris Brown.
Source: PM News
