Cinq Music raises $100 million from parent company GoDigital to buy music rights and expand internationally

Los Angeles-based GoDigital Media Group has an interesting strategy underpinning its entertainment business.

The company owns both content (largely through music distribution/acquisition rights company cinq music) as well as its own broadcast channels/digital networks, which may license Cinq’s repertoire and help expand its global audience.

Owned by GoDigital With U (an entertainment/lifestyle network for US “LatinX” audiences), Yoga works (which runs online courses with music, a la peloton), latido music (a music television station for fans of Latin American music) and VidaPrimo (which claims to be the largest Hispanic-facing multi-channel network on YouTube dedicated to Latin music).

GoDigital CEO Jason Peterson previously told MBW that a key strand of his firm’s strategy is the principle of “IP ownership and a primary [consumer] Demand generation function”, both of which are under one roof.

All of this explains why Cinq Music Group is so central to GoDigital’s plans and why GoDigital has invested heavily in Cinq since the latter company’s formation in 2012.

Today (April 19) GoDigital confirmed that it is investing its largest round of funding to date in Cinq – $100 million – to allow Cinq to “acquire music rights, both masters and releases, and further its international expansion”.

In a press release, GoDigital confirmed that its music portfolio is supported by Bank of America as consortium leader, with East West and Union Bank complete the syndicate.

Further details of the $100 million Series D funding round were not disclosed.

GoDigital’s $100 million investment in Cinq Music follows previous investments in the music company, including a $20 million cash injection in 2017 and a $40 million annual funding round 2019

The 2017 round was partially used by Cinq for a Over $10 million Acquisition of a master rights catalog recorded by hip-hop star TI; The 2019 round was partially used to purchase the Beluga Heights label, including its stake in the Jason Derulo Catalog.

Separately from Cinq, GoDigital acquired another well-known music company in 2021 – a company that promotes royalties tone fees – for what MBW understands, a sum in the high eight-digit range.

“Our continued ability to fund Cinq Music for its acquisitions stems from the fact that music rights are a long-lived, annuity-like asset,” he said Jason Peterson the new $100 million investment round.

“Over the past four years, GoDigital has invested more than $350 million through multiple capital vehicles across all of our businesses.

“Cinq has had great success scaling its label, distribution and publishing capabilities while implementing GoDigital’s proven global rights management business model.”

Jason Peterson, GoDigital

“Our 2019 Series C funding for Cinq helped acquire legendary record label Beluga Heights and catalog from artist Jason Derulo.

“Cinq has had great success scaling its label, distribution and publishing capabilities while implementing GoDigital’s proven global rights management business model.”

President of Cinq Music Group, Barry Daffurnadded, “The ever-growing support we receive from GoDigital Media Group continues to help us make our label the number one choice for music creators.

“We are excited to see what the future holds as we are an outstanding partner for rights holders in large and fast growing markets around the world.

“Today we have a presence in 11 countries and territories including the United States, Mexico, Colombia, Argentina and South Korea, with more to come.”

“Today we have a presence in 11 countries and territories including the United States, Mexico, Colombia, Argentina and South Korea, with more to come.”

Barry Daffurn, Cinq Music

Added CFO of GoDigital, Hunter Paletsas: “The entire GDMG family is proud of what Cinq continues to deliver. Cinq truly delivers on GoDigital’s mission of ‘Inspiring Happiness by Sharing Creativity’.”

cinqs The repertoire has more than 47,000 sound recordings and includes Latin music artists such as Anuel AA, Arc Angel, Bad Bunny, Daddy Yankee, Fuerza Regida and Natanael Cano, as well as music recorded by pop and hip-hop stars such as Janet Jackson and Jason Derulo , Sean Kingston and TI

Last year, Jason Peterson told MBW about Cinq Music’s strategy, “Typically, we’ve differentiated ourselves in the music industry by working in emerging, fast-growing markets around the world.

“Our repertoire is mostly influenced by Latin American music. But we’re also investing heavily in English-language pop, R&B and hip-hop that can travel.”

In addition to Cinq Music and Sound Royalties, GoDigital Media Group also owns AdSharea social media rights manager for music and videos that helps rights owners monetize fan engagement on YouTube, Google and SoundCloud.

AdShare previously announced that its video network exceeded the 100 billion views milestone in the 12 months ended April 1, 2021.music business worldwide