UMG has acquired Chabaka Music, a digitally-focused music advertising and marketing and distribution company that gives companies within the Center East and North Africa — the MENA area.
A press launch right this moment states, “The acquisition of Chabaka enhances UMG’s present service providing and footprint within the fast-growing and dynamic MENA market, which noticed development in recorded music revenues of 23.8% in 2022. It’ll permit UMG to increase its companies and attain inside the unbiased label and artist group.”
The acquisition marks one other step in the direction of UMG’s strategic purpose of tapping into ‘one of many fastest-growing music markets on this planet.’ Following the acquisition, Chabaka turns into a part of UMG’s Virgin Music Group and can work alongside MENA’s native Virgin and UMG groups.
Chabaka is a part of the CHBK Group, which additionally owns Concast and Boomerang Studios. Key members of the Chabaka workforce, together with cofounder and CEO Ala’a Makki, will retain their positions. Cofounder Tarek Makki will proceed to function advisor whereas persevering with his management of different corporations inside CHBK Group.
Patrick Boulos, CEO of UMG in MENA, believes the area represents untapped potential and alternative, and Chabaka will give UMG each scale and alternative ‘particularly when mixed with UMG’s world-leading world platform.’
Boulos added, “Chabaka is a singular assortment of visionary leaders, artists, and labels. I’m notably happy that Ala’a Makki and his workforce will be part of us and drive the following chapter of Chabaka’s success as a part of the UMG household.”
Ala’a Makki additionally spoke in regards to the tie-up and the regular development in MENA’s music markets. “These are thrilling instances for the area, and we’re thrilled to announce the partnership between Chabaka and UMG.”
Tarek Makki, cofounder Chabaka, stated, “With UMG’s world platform, experience, community, and Chabaka’s deep-rooted native expertise and presence, we’re all set to deliver a rare and distinctive providing to the market.”
The acquisition marks Common Music Group’s second main enterprise within the MENA Area.
In 2021, UMG paired with entrepreneur Wassim Slaiby to launch Common Arabic Music. Again then, UMG said that it aimed to ‘create new alternatives to advance Arabic music and tradition with world companions, platforms, and types.’
In a bid to attain that purpose, UMG additionally promoted Frédéric Voillemot to CFO and EVP of Enterprise Growth for Africa, the Center East, and Asia.
The music trade inside the MENA area has been attracting heightened worldwide curiosity.
Alongside UMG’s 2021 debut of Common Arabic Music, different main labels additionally dove into the area. Warner Music invested hundreds of thousands in Rotana Music, acquired Dubai-based distributor Qanawat Music, and launched Warner Music Israel. In the meantime, Sony Music introduced a talent-focused unique partnership with Egyptian manufacturing and artist administration firm, Craft Media.