Universal Music Group (UMG), the world’s leader in music-based entertainment, has entered into an agreement to acquire UAE-based music company, Chabaka, part of the CHBK Group.
Founded in 2013, Chabaka provides digital distribution, marketing, publishing, and label and artist services in the Middle East and North Africa (MENA) region.
The acquisition of Chabaka complements UMG’s current service offering and footprint in the fast-growing and dynamic MENA market, which saw growth in recorded music revenues of 23.8 percent in 2022. It will allow UMG to expand its services and reach within the independent label and artist community. The transaction is another demonstration of UMG’s strategy to increase its presence and accelerate its growth in high-potential music markets around the world.
Mr. Ala’a Makki, Co-Founder and CEO of Chabaka, said that, “These are exciting times for the region, which is one of the fastest-growing music markets in the world, and we are thrilled to announce the partnership between Chabaka and UMG. Joining forces with the leading music group in the world coincides with Chabaka’s 10th anniversary and marks an important milestone and a new phase for the company, our artists, and labels. Together with UMG, we will drive the transformation of the regional music industry and take it to new places, while creating new possibilities for our existing and potential local artists.”
Following the acquisition, Chabaka will become part of UMG’s Virgin Music Group, working closely with the local Virgin and UMG teams in MENA. Through the combination of Virgin Music Group’s pioneering solutions, creative network, and global footprint and Chabaka’s unparalleled regional expertise, the group will be uniquely positioned to build and reach the largest possible audience for talent from the region.
Mr. JT Myers, Co-CEO of Virgin Music Group, stated that, “As we continue to expand our footprint in emerging territories all over the world, Chabaka represents an important creative hub in one of the world’s most promising music markets. Mr. Ala’a Makki and his team bring a level of expertise and knowledge that will enable them to create opportunities for our artists and labels in the expanding MENA region, and in turn, we will be able to grow the global audience for Chabaka’s amazing roster of artists and labels.”
“The MENA region is one of the fastest growing music markets in the world, representing untapped potential and opportunity. Chabaka is a unique collection of visionary leaders, artists, and labels, and gives us both scale and opportunity, especially when combined with UMG’s world-leading global platform. I am particularly pleased that Ala’a Makki and his team will join us and drive the next chapter of Chabaka’s success as part of the UMG family,” commented Mr. Patrick Boulos, CEO of UMG MENA Region.
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