Mavin Records, the renowned Nigerian music label housing talents like Rema and Ayra Starr, is making headlines with its pursuit of investment or a potential full sale.
According to sources, heavyweights like Universal Music Group (UMG) and HYBE, along with financial sector music asset investors, are showing keen interest in this opportunity.
According to Billboard, the proposed deal values Mavin Records at over $125 million, with potential figures ranging from $150 million to $200 million.
It’s important to note that it’s unclear if music publishing is part of this deal. Shot Tower Capital is reportedly orchestrating the negotiations.
This strategic move aims to secure funding that will position the label for further growth. With the African continent poised to make a substantial impact on the global music stage, akin to the rise of Latin and K-pop genres in recent years, Mavin Records is gearing up for significant expansion.
What you should know
Even if the investment comes from a strategic player like UMG or HYBE, or if another music label acquires a stake in Mavin or outright buys the African music company, Mavin’s management, under the leadership of the esteemed Nigerian music executive Don Jazzy, is expected to retain some degree of control over its future.
Among potential suitors, sources suggest that HYBE holds the lead, followed by UMG. Notably, some of Mavin’s prominent artists have distribution ties with UMG entities in the U.S., which adds an interesting layer to the negotiations.
The success of artists like Rema and Ayra Starr is evident, with both amassing over 1.5 billion global on-demand streams. Rema’s collaboration with Selena Gomez on “Calm Down” alone has garnered an impressive 9.07 billion global streams.
Their international presence far surpasses their U.S. impact, with a significant share of their global streams coming from outside the United States.
Mavin Records boasts not only established artists but also up-and-coming talents like Ladipoe, Crayon, Boy Spyce, and Magixx. The label’s catalog includes music from industry stalwarts such as Tiwa Savage, Wande Coal, Iyanya, and Reekado Banks.
For a potential acquirer, this deal presents a golden opportunity to become a major player in the Nigerian Afrobeats scene, a genre that’s taking the world by storm. Artists like Wizkid, Davido, Burna Boy, and Mavin’s own talents have catapulted Afrobeats to global prominence.
The movement has gained such momentum that the Recording Academy has introduced a new Grammy Awards category for Best African Music Performance.
Beyond the music, the acquisition would also bring the executive expertise of Don Jazzy, a pivotal figure in the Nigerian music industry.
His track record includes founding Mo’ Hit Records in 2004 and subsequently launching Mavin Records in 2012.
As of now, all the companies mentioned in this story have either declined to comment or have not responded to requests for comment. (Nairametrics)
