Shamrock Capital is seeking a buyer for the digital distribution company.
According to sources, digital distribution company INgrooves is up for sale and may go for over 100 million dollars. The company is currently owned by Shamrock Capital, a large Los Angeles based investment firm.
INgrooves serves as the distributor for multiple high profile acts including Tech 9, Wiz Khalid’s, and Mac Miller, through their respective record labels. In addition to distribution, INgrooves also offers music publishing services. Billboard estimates INgrooves annual revenue at about $150 million with a 2 percent recorded music market share in the U.S.
The company has a long history with Universal Music Group. At one point UMG owned 51 percent of the company. When Shamrock bought into INgrooves in 2010 and executed a 2012 merger with UMG’s independent distribution company Fontana, it paid UMG $10 million.
UMG is considered a logical buyer, and likely negotiated the right of first refusal during the merger. Still, sources suggest that the fact that INgrooves is being shopped suggests UMG may not be interested, or at least not at Shamrock’s current asking price. Sources close to the situation say they may also be waiting to see what kind of offers come out of the bidding process before they attempt to buy the company.