Primary Wave has acquired Kobalt, a major publishing deal that will transform Primary Wave into one of the strongest independent music companies in the industry, the companies announced Monday.
Neither Kobalt nor Primary Wave disclosed the financial details of the acquisition Bulletin board It was previously reported that the deal could be worth up to $1.5 billion. The deal is expected to close by the third quarter of this year. Kobalt will remain a separately managed company under Primary Wave’s ownership, with Kobalt CEO Laurent Hubert continuing to run the publisher, the companies said.
“Over the many years that Laurent and I have known each other, I have always admired the amazing team he has built, as well as the exceptional growth Cobalt has experienced under his leadership,” Larry Mistel, CEO and co-founder of Primary Wave, said in a statement. “This acquisition will only strengthen its efforts to provide individual attention to creators and expert support at every stage of their journey and provide a very significant amount of capital for Kobalt for continued growth.”
Prior to the Kobalt deal, Primary Wave had already become one of the industry’s most prominent music companies as a particularly active player in catalog acquisitions, purchasing stakes in catalogs from the likes of Stevie Nicks, Bob Marley, Prince and Biggie Smalls among many others.
Kobalt started in the early 2000s and has gone on to become one of the largest independent music publishers in the music industry, with a roster that includes Andrew Watt, Max Martin, Phoebe Bridgers, Rojit Shahid, Paul McCartney and others. Kobalt previously had a more robust recorded music division as well which was fronted by AWAL, although the company sold AWAL to Sony Music back in 2021.
“Larry and the Primary Wave team are true champions of the music community, and their support underscores the value of the independent ecosystem we’re all building. Our customers can remain confident that our mission and leadership remain fully focused on their success,” Hubert said in a statement. We thank our founder Willard Ahdritz, Francisco Partners, and Matt Pincus for their incredible partnership over the past few years, which has positioned us perfectly for this next chapter.
The companies said that after the transaction is completed, Ahdritz will step down from his position as Chairman of Cobalt’s Board of Directors.
“Primary Wave is the right place for Kobalt’s next chapter,” Ahdritz said in a statement, thanking Hubert along with Kobalt executives Janet Perez, Thomas Erickson and Catherine Drabble, “and I step down as Chairman of the Board feeling confident about the future of the company, its people and its mission.”
