German collecting society GEMA is selling digital distributor Zebralution to New York-based private equity firm Insight Holdings Group.
GEMA confirmed today (January 20) that it is selling “its 100% shareholding in Zebralution GmbH, a digital media distributor for audiobooks, podcasts, and music” to Insight.
The move, according to GEMA, is in line with its corporate strategy to focus more on its core business of collective rights management. GEMA noted on Tuesday that the sale of Zebralution requires approval from the German Federal Cartel Office, Germany’s national competition regulator.
The acquisition represents Insight’s latest significant move in the independent distribution sector. The private equity firm, via Insight Partners, previously made a ‘substantial’ investment in DistroKid in 2021, valuing that platform at $1.3 billion.
“With the sale of our shareholding in Zebralution, we are concentrating even more strongly on our core business: the efficient distribution of royalties, the provision of high-quality services for our members, and the expansion of international licensing,” said GEMA CEO Dr. Tobias Holzmüller, in a statement to MBW.
“In recent years, we have jointly developed Zebralution in key areas and achieved shared strategic goals. The company is now excellently positioned and, with its new shareholders, is gaining additional momentum for technology-driven growth and innovation.”
Dr. Tobias Holzmüller, GEMA
“In recent years, we have jointly developed Zebralution in key areas and achieved shared strategic goals. The company is now excellently positioned and, with its new shareholders, is gaining additional momentum for technology-driven growth and innovation.”
GEMA described Insight as “an internationally positioned, financially strong investment group” with “extensive expertise in digital business models as well as an investment approach geared toward sustainable growth.” GEMA added that “this gives Zebralution the opportunity to continue growing and to drive new innovations forward.”
The transaction marks GEMA’s exit from digital distribution just over five years after acquiring a majority stake in the Berlin-based company in December 2019.
German trade publication New Business reports that GEMA became sole shareholder of Zebralution following the departure of co-founders Kurt Thielen and Sascha Lazimbat in late 2023.
Zebralution operates with 85 employees across nine locations and works with over 1,000 record labels and audiobook publishers globally.
Under the leadership of Co-CEOs Konrad von Löhneysen and Tina Jürgens, the company has been targeting €100 million in annual revenue, driven by growth in both music distribution and its rapidly expanding audiobook business.
New Business also published details of Zebralution’s financial performance, noting that the company posted profits of €835,000 in 2019, rising to €1.35 million in 2020 and €1.86 million in 2021. The distributor recorded a loss of €2.54 million in 2024, according to New Business.
Music Business Worldwide
