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Not for sale

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Today’s episode and memo is from my chat with Ghazi, the founder and CEO of EMPIRE. We talked about his company, the rise of indie music, the success of Shaboozey, and more. You can listen here or read a highlight below about why the company’s not for sale.

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Why Ghazi Won’t Sell EMPIRE

Lately, it’s rare to see an independent record label or distributor that’s not looking to sell or raise money. It’s a seller’s market. Capital is flowing. Investors have more interest in music than ever before. It’s become the norm for founders to build their companies for mergers and acquisitions.

But not EMPIRE.

At our summit, I asked Ghazi if he’s had over/under four requests in the past year from firms trying to buy or invest in the company.

Here was his response:

Again, this is a less common perspective from most company leaders in the space. In 2021, Quality Control Music was acquired by HYBE. 300 Entertainment was bought by Warner Music Group. Reservoir Media acquired Tommy Boy. I’ve spoken to many who have sold in recent years. Money was a big driver for these deals, but the company also wanted to strengthen its distribution. The indies had access to talent, but felt they didn’t have the firepower to maximize the reach of their music.

But in 2024, EMPIRE’s now behind the biggest hit of the year on the Billboard Hot 100 with Shaboozey’s “A Bar Song (Tipsy). It’s been the #1 song in the U.S. for thirteen weeks and counting. It’s another sign of the rise of independent music.

From a personnel perspective, bootstrapped companies without exit opportunities may not attract and retain employees who want equity, ownership, and higher financial upside. My friend Nathan Barry from ConvertKit had a great post about how he turned down Spotify’s offer to buy his bootstrapped business for hundreds of millions of dollars, how the decision impacted his team, and what he did in response.

But EMPIRE’s leadership core has been together for a while. Frankly, there’s been less turnover there than at some of the major record labels.

Ghazi’s quote on not selling EMPIRE was picked up by Billboard and has made the rounds. Several people have reached out to me about his talk at the summit. The running joke is that more investors will reach out whenever a CEO says their company is not for sale.

In many situations, it’s an effective bargaining tactic to increase a sale price. Who doesn’t want what they “can’t have”? But in EMPIRE’s case, the response from Ghazi will likely be the same as before.

Our fireside chat at the summit was brief, but you can listen to the full pod here. We talked about leadership, staying hungry, and EMPIRE’s plan for big upcoming sports events in San Francisco.

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Dan Runcie
Founder of Trapital

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