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 has received unanimous approval from Believe's Board of Directors.

The consortium will launch a public purchase 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 described as "firm and irrevocable" and will proceed within days.

"Believe is a world leader in the digital music market, with strong French roots and a powerful ambition to be the essential partner for independent artists and labels globally," stated Denis Ladegaillerie, CEO and founder of Believe.

The Board's approval highlighted several key benefits:

• Immediate liquidity for minority shareholders at a premium price
• Long-term investment opportunities
• Alignment with Believe's mission to empower independent artists
• Support for technological advancement and strategic acquisitions

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 competition impacts.

The acquisition occurs during a complex period for the French music industry. While the sector has seen seven consecutive years of growth and strong physical media sales, it faces challenges including:

• Lagging digital sales compared to other markets
• Slowing streaming subscription growth
• Competition from short-form video platforms
• Impact of streaming service tax increases

EQT and TCV have committed to supporting Believe's expansion and technological development, aiming to maintain its position as a global leader in independent music distribution while capitalizing on the industry's ongoing digital transformation.

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