Primary Wave‘s ten-figure acquisition of Kobalt is one of the music biz’s biggest stories of the year.
Last we heard, back in March, the two parties had entered into a definitive agreement, subject to customary conditions; the transaction was expected to be finalized in Q3 2026.
Just seven days into that Q3 period… it’s closed.
MBW sources close to the deal have confirmed that the acquisition closed on Tuesday (July 7) after passing all relevant regulatory scrutiny.
Deal size: around $1.5 billion. Money wired. Done.
The transaction sees Primary Wave Music acquire Kobalt‘s worldwide operations, its catalog of owned copyrights, and its digital collection society amra, from private equity firm Francisco Partners.
The deal includes an investment from Brookfield, a strategic partner to Primary Wave.
Goldman Sachs & Co. LLC served as financial advisor to Francisco Partners on the transaction.
Under Primary Wave’s ownership, Kobalt will continue to operate as a standalone company under the leadership of CEO Laurent Hubert and its current management team.
Announcing the agreement in March, Primary Wave CEO and Founder Larry Mestel said: “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.”
“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,” added Mestel.
Kobalt CEO Laurent Hubert said: “Primary Wave understands our vision of independence and the importance of our ‘creator first’ mindset driven by service, technology, and creativity.”
“We are incredibly excited about our next chapter with them as our partner,” Hubert continued. “Larry and the Primary Wave team are true champions of the music community, and their support underscores the value of the independent ecosystem we are all building.”
Francisco Partners acquired a 90% controlling stake in Kobalt in 2022, in a deal that valued the company at approximately $750 million.
The remaining shares were held by founder Willard Ahdritz, Matt Pincus‘s MUSIC, and Dundee Partners.
Under Francisco Partners’ ownership, Kobalt grew revenue to $794.4 million in the year ending June 2024 and launched a $700 million-plus rights acquisition joint venture with Morgan Stanley.
Kobalt previously sold recorded music arm AWAL and its neighboring rights business to Sony Music for $430 million in 2021.
Primary Wave closed its fourth flagship music fund at $2.225 billion in April, exceeding its $2 billion hard cap.
The fund was backed by a global investor base spanning insurance companies, pension funds, endowments, and large family offices, said the firm.
Brookfield, a co-investor in the Kobalt transaction, has been a strategic partner to Primary Wave since 2022, when it struck a $2 billion deal to fund the publisher’s music rights acquisitions.
The completed acquisition lands amid a wave of consolidation among independent music companies, with BMG also reported to be in discussions to acquire Concord in a separate transaction valued at up to $7 billion.Music Business Worldwide
In a significant development in the music industry, Primary Wave Music has successfully completed its acquisition of Kobalt for approximately $1.5 billion. This deal, which was initially announced in March and expected to close in the third quarter of 2026, was finalized on July 7, 2026, after passing all necessary regulatory approvals. The acquisition includes Kobalt’s worldwide operations, its catalog of owned copyrights, and its digital collection society, amra, and was finalized following an investment from Brookfield, a strategic partner of Primary Wave.
Primary Wave’s acquisition marks a major milestone in the music business and reflects ongoing trends of consolidation in the industry. The financial advisory role for Francisco Partners, Kobalt’s previous owner, was handled by Goldman Sachs & Co. LLC. Kobalt will continue to operate as an independent entity under the leadership of CEO Laurent Hubert and its existing management team. Both Primary Wave’s CEO and Founder, Larry Mestel, and Kobalt’s CEO, Laurent Hubert, expressed their enthusiasm about the acquisition, emphasizing their shared vision of supporting creators and enhancing Kobalt’s growth.
Kobalt was previously under the ownership of Francisco Partners, which acquired a 90% stake in the company in 2022 for approximately $750 million. Under Francisco’s management, Kobalt’s revenue grew significantly, reaching $794.4 million for the fiscal year ending June 2024. The company also launched a $700 million-plus rights acquisition joint venture with Morgan Stanley during this period. Notably, Kobalt had previously sold its recorded music arm, AWAL, and its neighboring rights business to Sony Music for $430 million in 2021.
Primary Wave recently closed its fourth flagship music fund at $2.225 billion in April, surpassing its initial hard cap of $2 billion. This fund attracted a diverse global investor base, including insurance companies, pension funds, endowments, and large family offices. The partnership with Brookfield, established in 2022, has enabled Primary Wave to pursue ambitious music rights acquisitions.
The completion of this acquisition is part of a broader trend of consolidation among independent music companies, with reports indicating that BMG is also in talks to acquire Concord in a separate transaction valued at up to $7 billion. Overall, Primary Wave’s acquisition of Kobalt represents a significant shift in the music landscape, positioning both companies for future growth and innovation in the industry.
