Cinq has confirmed that it has just raised another USD $250 million from its parent company GoDigital Media Group to acquire music rights.
The significant capital raise arrives as heat appears to be reentering the blockbuster music rights acquisition space. Over the past seven days, Billboard has reported that Sony Music Group recently agreed to buy a 50% stake in Michael Jackson‘s publishing and recorded music catalog for $600 million-plus, while the long-running potential sale of Queen’s music rights is also reportedly picking up pace.
Including the latest investment from GoDigital, Cinq, a Los Angeles-headquartered music label, distribution, and rights management company, has raised $410 million from its parent company to date – including a $100 million raise in 2022, $40 million in 2019 and $20 million in 2017.
Cinq’s catalog includes over 80,000 assets, which it says achieve “several billion video and audio streams per month”. The company plans to use the additional funds to focus on four “fast-growing” music genres: reggaeton, Musica Mexicana, Afrobeats, and Country.
Commenting on GoDigital’s latest investment in Cinq, Jason Peterson, Chairman and CEO of GoDigital Media Group, reiterated the company’s ambition, first shared with MBW in an interview in 2021, of amassing “a billion-dollar balance sheet of music rights”.
Peterson added: “With Cinq’s continuous expansion, operational excellence, and keen ability to attract top talent, it is only natural that we would again commit to accelerating growth towards that goal.
“We have cemented our reputation in the music industry as a leader when it comes to sourcing, valuing, acquiring and managing music repertoire.”
Cinq Music already has more than $300 million in assets under management.
“We’re in a time right now where more money is flowing into music than ever before, and investors are looking for experienced companies to deploy capital with.”
Barry Daffurn, Cinq Music
Commenting on the roadmap towards achieving the “billion-dollar balance sheet” milestone, Barry Daffurn, Cinq President and Co-Founder, told MBW in an exclusive interview that “fortunately, we’re in a time right now where more money is flowing into music than ever before, and investors are looking for experienced companies to deploy capital with”.
He added: “I don’t see that slowing down any time soon, so access to capital is not a constraint here. The majority of this round is earmarked for catalog acquisitions.”
According to Cinq, one of the first acquisitions following the new $250 million fund, and a “cornerstone” of the latest investment from its parent company, is a new eight-figure catalog deal.
Cinq says that this “soon-to-be unveiled marquee catalog acquisition” includes the “legendary repertoire” of some of the industry’s most influential hitmakers”.
Cinq’s Barry Daffurn told us that the acquisition sees the company build “upon our dominance within the Latin market.”
A subsidiary of GoDigital Media Group – a multinational conglomerate formed by Jason Peterson in 2006 – Cinq Music’s repertoire already includes music recorded by several prominent Latin music stars, such as Bad Bunny Anuel AA, Arcangel, and Daddy Yankee.
Cinq has also been making significant strides in the booming regional Mexican genre in recent years.
It signed a global deal last summer with Jesus Ortiz Paz’s Street Mob Records and has achieved hits such as Qué Onda from Fuerza Regida, Chino Pacas, and Calle 24, which peaked at No.16 on the Spotify Global Chart.
Plus, the company also has a longstanding partnership with Rancho Humilde. Cinq noted on Monday that it has also “help[ed] to fuel the careers” of stars like Natanael Cano, Marca Registrada, and DannyLux, among others.
“It has always been our ultimate vision to amass a billion-dollar balance sheet of music rights. With Cinq’s continuous expansion, operational excellence, and keen ability to attract top talent, it is only natural that we would again commit to accelerating growth towards that goal.”
Jason Peterson, GoDigital Media Group
A key part of Cinq’s parent company GoDigital’s strategy has also been a focus on the Latin community.
Alongside Cinq, GoDigital owns the likes of Latido Music (a 24-hour linear music channel focusing on US Hispanic audiences), plus mitú (described by Peterson as a “Buzzfeed for Latinx audiences in the US”), which offers entertainment, news and music programming through a video-led platform.
In August 2022, GoDigital teamed up with MEP Capital to acquire US-based NGL Collective, described as a “New Generation Latinx digital-first media and entertainment company”. As part of the acquisition, NGL Collective merged with GoDigital’s mitú, which it acquired in Q1 2020, to create NGLmitu.
In addition to its focus on the Latin Music space, Cinq said on Monday that it has plans to use its new investment to become “a major player” in the country music genre.
To that end, Cinq has launched a new office in Nashville and has recently acquired catalogs from hit songwriters including Jimmy Robbins and Ryan Hurd.
Cinq now has offices in 11 countries around the world, having previously expanded in Africa and Asia in addition to accelerating its presence in Latin America.
The company expanded into Africa in July 2020 and released its first Afrobeats single titled, Kachiri, via Zimbabwean rapper/singer King98 and Tanzanian singer, songwriter and artist, Diamond Platnumz.
Cinq’s repertoire also includes music recorded by superstars such as Janet Jackson, Jason Derulo, Sean Kingston and T.I., among others.
Elsewhere, Cinq parent GoDigital acquired music finance company Sound Royalties in ‘high eight-figure’ deal in 2021.
“I’m extremely proud of what we’ve built so far, and grateful to see it validated by the continued support of GoDigital and our financing partners.”
Barry Daffurn, Cinq Music
“I’m extremely proud of what we’ve built so far, and grateful to see it validated by the continued support of GoDigital and our financing partners,” said Cinq Music President Barry Daffurn.
“I’m also thankful for our amazing team and the unbelievable artists we get to work with and support every day. I couldn’t be more excited to continue to build this company on a global stage.
‘As we grow, we remain laser-focused on providing artists with the maximum value in financing and services to ensure that staying independent isn’t a sacrifice.”
Music Business Worldwide