SA: Black Coffee acquires stake in Gallo

The news follows Lebashe Investment Group’s recent R75m buyout of Gallo Record Company, which Lebashe then merged with its media and entertainment platform Arena Holdings.

Black Coffee inked the deal with one of SA's biggest and oldest labels through his investment holding company Flightmode Digital. Neither party has disclosed further details about the transaction.

Lebashe chairperson Tshepo Mahloele believes the investment in GMI would significantly enhance Arena’s entertainment offering to its consumers. The partnership with Flightmode is also expected to add tangible value and attract diversified audiences to Arena’s platform, he said.

“We are delighted that South Africa’s most extensive musical archives reside within Arena Holdings, and it is our intention to explore and reintroduce these amazing classical archives to our mainstream market, locally and globally. The collaboration with internationally renowned DJ Black Coffee will usher in a new era for the South African music business on a global scale,” Mahloele said

Black Coffee also commented: “This is the first of many moves we are working on to change the landscape of both the South African and African music industry. The music in the Gallo catalogue is some of the most culturally rich that has ever been created in this country.

“The partnership with Lebashe to invest in the catalogue and masters, is more than just a business transaction – it’s about creating an environment in which artists and creatives have a truly equitable stake. It is also the beginning of an industry revolution where African artists are part of structures that are fair and encourage new ways to monetize content.”

Flightmode Digital was established in 2017 and has equity stakes in a number of African startups, including Yoco, Andela, Sweep South and Rensource. The company is also developing GongBox, a digital music streaming service that will launch in the third quarter of 2020.