Believe Digital is for sale and units associated with at least two of the three major label groups have expressed strong interest, sources tell PMG. Other possible buyers include BMG, Concord and several private equity firms.
Believe declined to comment for this story.
Founded by current president Denis Ladegaillerie in 2004, Believe began an aggressive expansion in 2015, financed by $60 million from private equity firms TCV, XAnge, GP Bullhound and Ventech. TCV also led a $250 million funding round for Spotify in September 2014, and is a major investor in Vice Media.
One source described global music executives jumping on planes to Paris to visit a "due diligence data room" set up so that they could view financial, legal and other business documents prior to the relatively tight bid deadline set by Believe. Other execs added Paris to last week's MIDEM itinerary.
After Believe aquired TuneCore in 2015, Ladegaillerie said that the combined companies would generate more than $250 million that year, which he boasted was was “bigger than any player in the market outside of the three major labels.”
With income from streaming soaring, Believe's original investors may have decided now was the right time to sell.
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