Universal Music Group Acquires Chabaka : to Expand in MENA’s Booming Music Market

Universal Music Group Acquires Chabaka : Universal Music Group (UMG) acquired Chabaka, a music company that collaborates with over 150 independent artists and local labels in the Middle East and North Africa (MENA) region. The acquisition aims to expand UMG’s presence in a rapidly growing music market. According to IFPI, music sales in MENA will increase by 23.8% in 2022.

Ala’a Makki, CEO of Chabaka, and other team members will retain their jobs post-acquisition. Chabaka co-founder Tarek Makki to be advisor. The purchase aligns with UMG’s plan to enter promising music markets globally.

Ala’a Makki, co-founder and CEO of Chabaka, said, “This partnership is exciting and important for our company, artists, and labels.” Patrick Boulos, UMG’s MENA CEO, said the same thing. He said MENA has untapped potential and Chabaka offers scale and opportunity. This purchase follows the start of Universal Arabic Music by UMG and Wassim “SAL” Slaiby in 2021.

After the purchase, Chabaka will join UMG’s Virgin Music Group and collaborate with Virgin and UMG teams in MENA. Last year, UMG appointed Frédéric Voillemot as CFO and EVP of Business Development for Africa, the Middle East, and Asia. This showed their commitment to global business growth.

Universal Music Group Acquires Chabaka

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Chabaka is owned by the CHBK Group, along with Concast and Boomerang Studios. Started in 2013 by brothers Ala’a and Tarek Makki. Tarek Makki emphasized the goal of finding a partner to help Chabaka grow while safeguarding artist interests.

JT Myers, Co-CEO of Virgin Music Group, praised Chabaka as a creative hub in a promising music market. He expressed confidence in Ala’a Makki and his team’s ability to assist artists and labels in the growing MENA region discover new opportunities. Nada Alhelabi, Strategy Director at MDLBEAST and XP Music Futures Program Director, believes the MENA region will lead the music industry.

IFPI reports increased music sales in MENA, attracting global music companies like UMG. The acquisition of Chabaka by UMG is a way to expand its business and promote Arabic music and culture globally.UMG’s move highlights the growing significance of MENA in music. With a rising fan base and local talent, MENA is poised to be a major player in global music. Companies like UMG want to benefit from this.

Our Reader’s Queries

How much do Universal Music Group executives make?

Our data suggests that the ideal compensation range for an Executive at Universal Music Group Nv falls between $335,051 and $461,558, with an average salary of $387,417.

Does Universal Music Group own Spotify?

Black Sheep has accused UMG of violating their recording contract by not paying them the appropriate amount of Spotify royalties. UMG disclosed in 2021 that it owns over 3% of Spotify’s shares, valued at $1.7 billion, with a significant portion of it coming from the 2008 agreement.

Who currently owns Universal Music Group?

Vincent Bolloré’s family has been identified as the primary stakeholder in UMG, owning 28% of the shares. This is made up of Bolloré’s holding company (18%) and Vivendi, a subsidiary headed by his son Yannick Bolloré (10%). Meanwhile, Tencent has emerged as the largest corporate shareholder with a 20% stake in UMG.

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Sony Music Entertainment is a subsidiary of Sony Corporation of America, while Universal Music Group is the world’s leading music company with operations in 60 territories.

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