EQT-Led Consortium Gets Green Light to Acquire 72% Stake in Believe, Plans Public Offering for Remaining Shares
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 transaction is now firm and irrevocable, with all conditions fulfilled.
Denis Ladegaillerie, CEO and founder of Believe, stated: "Believe is a world leader in digital music, with strong French roots and a mission to empower independent artists and labels globally. With TCV's continued support and EQT's expertise, we'll accelerate our growth and strengthen our position as the global reference for independent music."
The Board cited several key benefits:
- Immediate liquidity for minority shareholders at a premium price
- Long-term investment opportunity
- Strong alignment with Believe's mission and values
This development follows Warner Music Group's recent decision to withdraw from acquisition talks with Believe, after facing concerns from independent music organizations about potential market competition issues.
The acquisition occurs during a complex period for the French music industry:
- Seven consecutive years of growth
- Strong physical media sales
- Lagging digital sales compared to other markets
- Slowing streaming subscription growth
- Challenges from short-form video platforms
- Impact of streaming service tax increases
The consortium's vision includes significant investments in technology and strategic acquisitions to drive growth beyond market rates, reinforcing Believe's position as a leader in digital music distribution and artist services.