Black Coffee acquires stake in Gallo Music
South Africa’s leading dance music export, DJ Black Coffee has acquired a significant stake in Gallo Music Investments (GMI), South Africa’s largest and oldest independent label.
He acquired the stake from Lebashe Investment Group for an undisclosed sum via his investment holding company FlightMode Digital.
Gallo was purchased by Lebashe from Tiso Blackstar (formerly Johnnic Communications), in a deal valued at R75 million just two months ago.
Gallo has been doing business for over 90 years boasting some of South Africa’s biggest artists including Lucky Dube, Dorothy Masuka, Ladysmith Black Mambazo, Stimela, Sipho Hotstix Mabuse and Mango Groove.
All of these artists have achieved multi-platinum sales status in South Africa.
Currently, the following artists are on Gallo’s books: Bhekumuzi Luthuli, Harari, Soul Brothers, Mahotella Queens, Sakhile, Thandiswa Mazwai, Siphiwe Dana, & Sipho Gumede.
Flightmode Digital, started by Black Coffee in 2017, has equity stakes in some of Africa’s top start-ups including Yoco, Andela, Sweep South and Rensource.
A new era for SA music globally
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.
“The collaboration with internationally renowned DJ Black Coffee will usher in a new era for the South African music business on a global scale.”
Black Coffee added: “This is the first of many moves we are working on to change the landscape of both the South African and African music industry.
“The music in the Gallo catalogue is some of the most culturally rich that has ever been created in this country.
“The partnership with Lebashe to invest in the catalogue 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.”
Black Coffee has the globe’s attention so if anybody can be instrumental in taking more of South Arica’s fine talent to the world it could be him.