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In News

Black Coffee Acquires Stake In Gallo Music, The Largest Record Label In South Africa

May 22, 2020 Unorthodox Reviews

Black Coffee Acquires Stake In Gallo Music, The Largest Record Label In South Africa

South African music icon Black Coffee has acquired stake in Gallo Music via his investment holding company FlightMode Digital from Lebashe Investment Group for an undisclosed sum.

Just two months back, Gallo was purchased by Lebashe Investment Group from Tiso Blackstar (formerly Johnnic Communications), in a deal valued at R75 million (approximately $4.3m).

Gallo has been in operation for close to a century and has worked with some of South Africa’s greatest artists including Lucky Dube, Dorothy Masuka, Ladysmith Black Mambazo, Stimela, & Sipho Hotstix Mabuse and Mango Groove with them all achieving multi-platinum sales in South Africa.

Black Coffee and Usher

Currently, the Record label is home to Bhekumuzi Luthuli, Harari, Soul Brothers, Mahotella Queens, Sakhile, Thandiswa Mazwai, Simphiwe Dana, and Sipho Gumede.

Flightmode Digital, Black Coffee’s investment holding company, was launched in 2017 and has equity stakes in some of Africa’s top startups including Yoco, Andela, Sweep South and Rensource.

THE COLLABORATION WITH INTERNATIONALLY RENOWNED DJ BLACK COFFEE WILL USHER IN A NEW ERA FOR THE SOUTH AFRICAN MUSIC BUSINESS ON A GLOBAL SCALE.

Tshepo Mahloele, Lebashe Investment Group

Lebashe Chairman Tshepo Mahloele 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.

“THIS IS THE FIRST OF MANY MOVES WE ARE WORKING ON TO CHANGE THE LANDSCAPE OF BOTH THE SOUTH AFRICAN AND AFRICAN MUSIC INDUSTRY.”

Black coffee

“The partnership with Lebashe to invest in the catalog 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.”

Gallo Records was initially in a joint partnership with Warner Music in South Africa, called Warner Music Gallo Africa. The partnership came to an end in 2013 after the major record company’s buyout of Gallo Records’ share of their JV, and launch of Warner Music South Africa.

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