VANCOUVER (CelebrityAccess MediaWire) — Brit entertainment firm MAMA Group has signed off on a deal to purchase 20% of record label and management company, Nettwerk Music Group for $14 million in cash and securities, the Canadian Press has reported.
Nettwerk Music is the label and management company that provides a home for a diverse roster of high profile artists, including Avril Lavigne, Sarah McLachlan and The Barenaked Ladies. The MAMA Group, which launched in 2002 is a relative newcomer to the scene but has a strong presence, particularly in the UK, with artist and venue management operations as well as a media and publishing division.
The acquisition, which has been in the works for nearly a year, is expected to give both firms expanded access in key markets on both sides of the pond. Nettwerk serves to gain from MAMA's string of UK venues while Nettwerk will provide important North American infrastructure for MAMA to expand its influence here.
"From their perspective we've got infrastructure in North America in place, so we're appealing to them too," said Nettwerk Pres. Ric Arboit during a recent interview. "We just got a real sense that they understood who Nettwerk was and after spending time with them we got a sense who they were as people and we all felt we aligned."
Both firms have been in the forefront of the trend of late to provide artists with "one stop shopping" for touring, promotional, management and label services.
"We believe that this alliance creates one of the most exciting opportunities in the music industry – not by creating the biggest music business, but by combining our skills and assets to become the best," MAMA co-CEOs Adam Driscoll and Dean James said. – CelebrityAccess Staff Writers