REVEALED: Don Jazzy did not sell Marvin Records, rather Universal Music Group bought majority stake

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Despite reports making the rounds that Marvin Records has been sold off but what happened was a significant development for the global music industry as Universal Music Group (UMG), the world’s foremost music company, has successfully acquired a majority stake in Nigeria’s leading record label, Mavin Global.

The announcement, made on Monday, disclosed that while the deal is now on the table, it is contingent on regulatory approval, with an anticipated closure by the end of Q3 2024.

The statement from Universal Music Group highlighted the strategic nature of the investment, stating, “Universal Music Group (UMG), the world leader in music-based entertainment, today announced a majority investment in one of the world’s most dynamic and exciting independent record labels, Mavin Global (Mavin). The deal remains subject to regulatory approval and is expected to close by the end of Q3 2024.”

This move comes after Billboard reported in October 2023 that Mavin Records was exploring external investment options, either through a partial acquisition or an outright sale.

The financial aspects of the deal are significant, with an estimated valuation ranging from $125 million, potentially escalating to $150 million or $200 million.

UMG emphasized that Mavin Global’s comprehensive services in Nigeria would benefit from UMG’s expansive global network of labels and businesses. Importantly, Mavin Global is set to retain autonomy over its strategic decisions and future talent development.

Founders and key executives of Mavin Global, Michael Collins Ajereh (Don Jazzy) and Chief Operating Officer Tega Oghenejobo, will continue to lead the company under the new partnership. This collaboration presents an opportunity for UMG to work closely with proven local executives and experienced A&R professionals.

The statement did not disclose the specific financial details of the acquisition but revealed that TPG Records has exited the business entirely, while Kupanda Capital will maintain a minority stake and strategic advisory role.

Commenting on the acquisition, Don Jazzy expressed pride in Mavin Global’s accomplishments, stating, “I’m proud of the artists, careers and brand we’ve built that have made Mavin the force it is today. In this historic partnership with UMG, we will continue that mission in Africa and across the globe.”

Sir Lucian Grainge, Chairman & CEO of Universal Music Group, also shared his enthusiasm, saying, “Mavin’s brilliant artists have been catalysts in the transformation of Afrobeats into a global phenomenon, and we’re thrilled to welcome them into the Universal Music Group family.”

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