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Kobalt plans further expansion with bigger artist deals and possible catalogue acquisitions
By CMU Editorial | Published on Wednesday 10 October 2012
Music publishing firm Kobalt plans to invest $100 million in advances and copyright acquisitions. The move sees the company, best known for providing administration services to other music right owners, becoming a more prolific copyright owner in its own right. This development sits alongside other recent expansions at Kobalt into artist and label services.
According to Billboard, the expanding music firm says it has raised $75 million via its newish Kobalt Capital business, and can raise another $25 million “by drawing down funding from the company’s credit facilities”. About $20 million has already been used to enter into bigger artist deals than the company would have done in the past, while future funds may be used for either further songwriter deals, or to buy catalogue.
Kobalt Capital CEO Johan Ahlström told reporters: “As we enter our second year of activity of KCL we are looking at stepping up our investment in royalty advances and copyright acquisitions with a focus on rights where value uplift can be achieved through Kobalt’s efficient royalty collections and value enhancement through active management and marketing”.
