MTG sells Trace stake

TPG will be investing together with Evolution Media and Satya Capital, with which it formed investment partnerships targeted towards Africa in 2015.

“Trace is a great business that we have enjoyed developing together with its talented management team over the past four years,” MTG president and CEO Jørgen Madsen Lindemann said.

“Trace is a global pioneer in Afro-urban entertainment and is now rolling out its streaming service Trace Play around the world

“Our focus at MTG is on the accelerated digital transformation of our broadcasting businesses and the rapid expansion of our MTGx digital entertainment portfolio.”

The acquisition comes four years after MTG invested in Trace.

Trace co-founder, chairperson and CEO Olivier Laouchez said: “By partnering with TPG Growth, a global investor known for its ability to grow and scale businesses, we are well-positioned to build on our success and accelerate our transformation into the leading global Afro-urban digital entertainment group.

“We will leverage our unique assets and TPG Growth’s deep experience with groundbreaking entertainment and technology businesses to launch ‘Episode 2’ of Trace.”

TPG, which has investment interests in the streaming service Spotify, has committed to the expansion of the digital reach that Trace has.

The company said there had been considerable migration to digital media, which had led to a change in the way young people were consuming media.

“The African music and entertainment industry is dynamic and has experienced huge growth in the last decade, driven by the booming youth population and rapid adoption of digital technology,” TPG Africa managing partner Yemi Lalude said.

“As smartphone penetration on the African continent continues to rise, the way young people consume content is migrating to mobile and digital. We are very excited to help grow the Trace brand not only in Africa but worldwide.”

Trace TV was launched after the acquisition of a New York magazine by the same name in 2003. Trace has since devoted itself to Afro-urban music and entertainment. To date, Trace owns and operates 21 paid TV channels, four FM radio stations, and more than 30 digital and mobile services.