Photo Credit: Zebralution
German collection society GEMA is selling Zebralution, the digital distributor it acquired a stake in back in 2019, to key DistroKid investor Insight Holdings Group.
After acquiring a majority stake in digital distributor Zebralution in 2019 and taking complete ownership in 2023, German collecting society GEMA is already selling it—to a major DistroKid investor, the U.S.-based investment firm Insight Holdings Group.
The sale, which is still subject to regulatory approval, was confirmed by GEMA CEO Tobias Holzmüller. He asserts the distributor is “now excellently positioned, and with its new shareholders, is gaining additional momentum for technology-driven growth and innovation.”
Insight Holdings, through its business Insight Partners, made a “substantial investment” into DistroKid back in 2021, which means it’s already well-versed in the distribution business. To wit, the company says that since making that investment, Insight has helped DistroKid “optimize its marketing efforts, enhance global expansion, and navigate a critical leadership transition.”
So while sharing a major investor doesn’t necessarily mean that there could be any further connection between DistroKid and Zebralution, Complete Music Update points out that some form of consolidation could make sense. The two businesses actually complement one another well, with Zebralution having stronger ties in Europe and DistroKid holding things down in North America. It’s also worth mentioning that Zebralution provides higher-level distribution services to record labels beyond just the music industry.
Zebralution, while perhaps not as big a name as DistroKid, has been in the game since 2004 during the infancy of digital music distribution. The company has provided distribution services to both independent labels and artists, and branched out into audiobook distribution in 2010. Most recently, it’s expanded into the podcast business.
The German not-for-profit collecting society bought a majority stake in Zebralution in 2019, but took full ownership in 2023 after the departure of co-founders Kurt Thielen and Sascha Lazimbat.
GEMA’s sale is still subject to regulatory approval, but the company confirms it will sell 100% of the business to Insight Holdings, which it says has “extensive expertise in digital business models.”
