Introduction – Why Talk About Creative Industry Exits in Music?
For too long, African music has been framed only through its superstars — Wizkid, Burna Boy, Davido, Ayra Starr. But behind the fame are companies, contracts, and strategic deals that actually shape the industry’s future. A merger, acquisition, or joint venture isn’t just about “selling a label.” It signals that a music business has built enough value to attract investment, expand globally, and sustain itself beyond one celebrity’s shine.
Exits matter because they unlock liquidity, cement legacies, provide leverage, and light the path for future entrepreneurs. Yet many African creative companies still treat music as passion projects or cash-flow hustles, not as scalable enterprises.
From the 90s to Today: The Evolution of Nigerian Labels
- 1990s–2000s: Labels like Kennis Music dominated, but structures were loose and focused more on individual artists than enterprise value.
- 2010s: The rise of artist-led labels — YBNL (Olamide), Starboy (Wizkid), Spaceship (Burna Boy). They brought innovation, but many were still too dependent on one figure.
- Today: Labels like Mavin Records, Chocolate City, and Native Records are proving African music companies can mature into structured, investor-ready enterprises.
Case Study – Mavin Records: A Textbook Exit
Founded in 2012 by Don Jazzy, Mavin Records has become a global talent incubator, home to Rema and Ayra Starr.
- Visionary Leadership: Don Jazzy and Tega built Mavin as a brand, not just a label, investing in teams, artist development, and excellence.
- Structured Growth: With corporate governance, legal frameworks, and private equity support from TPG and Kupanda, Mavin became investor-ready.
- Global Partnership: In 2023, a deal with Universal Music Group brought capital, distribution, and visibility.
Mavin proves that exits don’t dilute culture — they scale it.
YBNL: Scaling Through Partnerships
Olamide’s YBNL has launched stars like Fireboy DML and Asake. Instead of selling equity, it partnered with U.S.-based Empire for distribution, balancing global reach with Lagos street credibility. A hybrid model — not an outright exit, but still global leverage.
Chocolate City: Reinventing an Icon
Once the powerhouse of MI, Ice Prince, and Jesse Jagz, Chocolate City faced structural and management challenges. In 2019, a distribution deal with Warner Music helped revive its legacy and embed it into a global ecosystem — proof that reinvention is possible through exits.
Native Records: The New Generation Move
In 2022, Native Records — built by the founders of Native Mag and NativeLand Festival — struck a joint venture with Def Jam. Instead of waiting decades, they went global early, showing that today’s creatives don’t need to be “industry elders” before cutting transformative deals.
Lessons for Creatives & Investors
- Structure is everything: Contracts, governance, and processes make exits possible.
- Exits ≠ sellouts: They’re strategies to scale impact, not abandon culture.
- Passion must meet business: Labels should be run like companies, not hobbies.
- Investors must shift perspective: See creative companies as scalable ventures, not vanity projects.
Comparisons & Risks
- In the West: Artists and labels often sell catalogs (e.g., Justin Bieber, Dr. Dre), creating liquidity and protecting legacies.
- In Africa: Without structured exits, labels risk stagnation, burnout, or IP loss to piracy and exploitation.
Conclusion – The Next Wave of Creative Exits
From Mavin’s Universal deal to YBNL’s Empire partnership, Chocolate City’s Warner tie-up, and Native’s Def Jam venture, African music has entered a new era.
The future lies in more founders and investors embracing exits as tools for scale — not as the end of creativity, but as the beginning of billion-dollar ecosystems.
✍️ By Samuel “Samo” Onyemelukwe, with help from AI.
Mr. Onyemelukwe is a Nigerian-American and African media and entertainment industry expert, currently VP Global Business Development and Managing Director of Trace West Africa.
