Primary Wave Set to Acquire Kobalt's Worldwide Operations in Potential $1.5 Billion Deal

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**Primary Wave** announced on Monday (March 23) its intent to acquire **Kobalt**&rsquo;s worldwide operations, including its extensive catalog of owned copyrights and digital collection company **amra**, according to a press release.&nbsp;

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Terms of the deal, which are subject to regulatory approval and expected to close in the latter half of 2026, were not disclosed.&nbsp;<em>Billboard</em>&nbsp;reported in February that Kobalt&rsquo;s majority owners Francisco Partners and minority owners Dundee Partners, Kobalt co-founder and CEO **Willard Ahdritz** and MUSIC&rsquo;s **Matt Pincus** were in talks to sell the company for a price sources said could top $1.5 billion.










According to the statement, **Kobalt** would operate as a stand-alone company. **Primary Wave** would benefit from **Kobalt**&rsquo;s publishing administration and digital collections platform, **amra**. **AMRA** directly collects mechanical and performance royalties from digital service providers. This could allow **Primary Wave** to improve its profitability by cutting out service fees paid to local collection societies and sub-publishers on its existing music publishing portfolio.






**Primary Wave**&rsquo;s extensive portfolio includes stakes in the iconic catalogs of artists such as **Prince**, **Whitney Houston** and **Bob Marley**, and is valued at nearly $6 billion.

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In a statement announcing the acquisition, Primary Wave Music CEO and founder **Larry Mestel** said Kobalt CEO **Laurent Hubert** and his management team would continue leading Kobalt’s pledge to be transparent and “creator first.”






“Over the many years **Laurent** and I have known each other, I have always been impressed by the remarkable team he has built, as well as the extraordinary growth **Kobalt** has experienced under his leadership,” said **Mestel**. “This acquisition will only enhance his efforts to provide creators individualized attention and specialized support at every stage of their journey and to provide a very significant amount of capital to **Kobalt** for continued growth.”   






Francisco Partners acquired around 90% of **Kobalt** in 2022 in a deal that reportedly valued Kobalt at $750 million. One year later, **Kobalt** partnered with Morgan Stanley’s Tactical Value group to launch a joint venture with $700 million to invest in music copyrights.






The statement released Monday did not disclose whether the music assets Kobalt purchased with Morgan Stanley, which include certain rights related to the catalogs of **\*NSYNC** and **AJR**, are included in the deal with Primary Wave.






“Primary Wave understands our vision of independence … service, technology and creativity,” **Hubert** said in a statement. “[They] are true champions of the music community, and their support underscores the value of the independent ecosystem we are all building. Clients can remain confident that our mission and leadership remain entirely focused on their success.”