Last week, MBW reported that music’s next big-money buyout would be Qanawat Music, which operates as a music distributor across the Middle East and North Africa.
Our sources told us that Warner Music Group was favorite to acquire Qanawat Music.
Today (March 21), Warner has announced that it has entered into an agreement to acquire the distributor.
WMG says that the deal, which is expected to complete “soon”, will see Warner significantly expand its presence across the region.
Qanawat Music claims to be “the leading independent music distributor in the MENA region, with the largest Arabic Music Catalog worldwide”.
According to WMG, Qanawat Music becomes its key local distributor, as well as “a source of upstreaming opportunities”.
WMG also says that Qanawat is responsible for a significant proportion of new releases in the Middle East and North Africa, and also has interests in brand partnerships and music publishing administration.
Our sources tell us that the company was on the block for a substantial eight-figure sum.
Qanawat Music was a division of Qanawat FZ LLC, a regional digital mobile solutions provider.
The company was founded by Adnan Al-Obthani, who will remain CEO of Qanawat Music following the acquisition, while also continuing to work for Qanawat FZ LLC.
WMG says that Qanawat Music will operate as a standalone company under the Warner Music Group umbrella.
Qanwat Music has a presence in Dubai, Cairo and Casablanca, and offers its services in more than 20 countries across the region.
Warner Music opened its Middle East affiliate, headquartered in Beirut, back in 2018.
Last year, Warner Music completed its investment in Rotana Music, the Arab world’s leading independent record label.
“This will be a new chapter for Qanawat Music and we couldn’t be more excited.”
Adnan Al-Obthani, Qanwat Music
Adnan Al-Obthani said: “Warner Music has a long-term vision for developing the market here in the Middle East and North Africa, as well as a commitment to connect Arabic artists with a global fanbase.
“We’ve built this business up over 20 years and were determined that we would only partner with a company that we could confidently trust to look after our artists’ best interests.
“This will be a new chapter for Qanawat Music and we couldn’t be more excited.”
“This acquisition will also see Warner Music expand its footprint in the region, gaining representation in Dubai, Cairo and Casablanca for the first time.”
Alfonso Perez-Soto, WMG
Alfonso Perez-Soto, President, Emerging Markets, Recorded Music, WMG, added: “With this new deal, we have a massive opportunity to export exciting talent from the Middle East and North Africa – there is an important and growing Arabic diaspora worldwide that we can tap into and which will help amplify the music.
“We’ve recently seen huge global success with our artists from Sub-Saharan Africa and we’re eager to repeat this achievement by building a proper distribution and upstreaming structure for the best talent from the Arabic world.
“This acquisition will also see Warner Music expand its footprint in the region, gaining representation in Dubai, Cairo and Casablanca for the first time.”
“This is a seismic moment in the development of the music industry in our region.”
Moe Hamzeh, Warner Music Middle East
Moe Hamzeh, Managing Director, Warner Music Middle East, said: “This is a seismic moment in the development of the music industry in our region.
“Combining the experience and relationships Qanawat has built up over the years with the global reach and expertise of Warner Music will hugely benefit many artists.
“This deal will shine a spotlight on the music industry in the Middle East and North Africa. It is also the latest example of Warner Music Group’s long-term commitment to the region, with many more developments in the pipeline.”Music Business Worldwide
