An investment consortium led by EQT, alongside TCV and Believe CEO Denis Ladegaillerie, is acquiring a 72% controlling stake in digital music distributor Believe. The deal received unanimous approval from Believe's Board of Directors.

The consortium will launch a public offer for remaining shares at €15 per share, representing a 43.8% premium over the 30-day average stock price. The transfer of shares is confirmed as "firm and irrevocable."

Denis Ladegaillerie emphasized that this partnership with EQT and TCV will accelerate Believe's growth trajectory and strengthen its position as a global leader in independent music distribution. The consortium plans to invest in technological advancements and strategic acquisitions to outpace market growth.

The Board's favorable opinion highlighted several key benefits:

• Immediate liquidity for minority shareholders at a premium price
• Long-term investment opportunities
• Alignment with company mission and values

This development follows Warner Music Group's decision to withdraw from acquisition talks with Believe earlier this month, amid concerns from independent music organizations about potential market competition issues.

The acquisition occurs during a mixed period for the French music industry:

• Seven consecutive years of growth
• Strong physical media sales
• Slower digital sales compared to other markets
• Declining streaming subscription growth
• Challenges from short-form video platforms
• Impact of streaming service tax increases

The deal represents a significant shift in the digital music distribution landscape, with EQT and TCV positioning Believe for expanded global growth while maintaining its commitment to independent artists and labels.

Related Articles

Previous Articles