As widely rumored earlier this year, BMG and Concord have officially announced “a definitive agreement to combine their businesses,” creating what is basically the fourth major music company, although they’re terming it “the leading independent music company in the world.”
The deal, which sources place between $6.6 billion and $7 billion, would form a company that is considerably smaller than the two dominant major music groups, Universal and Sony — but not far from the third, Warner, at least by some metrics. Terms of the deal were not disclosed.
The combined company will operate under the BMG name and will span music publishing, recorded music, theatrical rights, and digital distribution. Collectively, the companies’ rosters include works from Jelly Roll, Paul Simon, Lainey Wilson, will.i.am, Jason Aldean, Tina Turner, Diane Warren, and Jean-Michel Jarre, to Creedence Clearwater Revival, Daddy Yankee, Denzel Curry, Hamilton, Phil Collins, R.E.M., and “The Sound of Music.”
The combined company will be owned approximately 67% by Bertelsmann and approximately 33% by affiliates of Great Mountain Partners. Affiliates of Great Mountain Partners will also receive a one-time cash payment of $1.16 billion, according to the announcement. The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in the second half of 2026.
Concord CEO Bob Valentine will serve as CEO, and BMG CEO Thomas Coesfeld as chairman of the combined company, with global headquarters in Nashville and European Headquarters in Berlin. It will be named BMG with divisions “BMG Publishing” and “Concord Records.”
The deal “includes a mid-term ambition to achieve $1.2 billion in EBITDA, building from a pro forma EBITDA base of more than $730 million in 2026, driven through organic growth, M&A, and synergies, according to the announcement.
While the company would certainly qualify as a “fourth major” in terms of scale, with few exceptions, the two companies don’t really invest in current superstars: The recorded-music divisions of both BMG and Concord don’t have anyone in the same galaxy as a Taylor Swift or Bruno Mars or Harry Styles, although BMG’s country division’s roster of recorded music does boast Lainey Wilson and Jelly Roll.
Instead, the companies share similar publishing-and-catalog-heavy business models. Since 2021, BMG has invested more than $1.5 billion in music rights acquisitions and an equal amount in signings, licenses, and technology, the announcement states. Concord has invested more than $3 billion since 2020 across publishing, recorded music, theatrical rights, and distribution, and with more than 125,000 artists and songwriters around the world.
Davis Polk & Wardwell LLP is serving as legal counsel to BMG. J.P. Morgan is serving as financial advisor to Concord and Latham and Watkins LLP and Reed Smith LLP are serving as legal counsel. Alston & Bird LLP is advising Great Mountain Partners.
“We believe this is a truly one-of-a-kind opportunity to bring together two world-class teams and rosters at the right moment, as scale in rights ownership becomes increasingly critical to long-term growth,” said Thomas Coesfeld, Chief Executive Officer of BMG and designated Chairman of the combined company. “This transaction accelerates our successful BMG Next strategy by enabling a more ambitious and sustained approach to investing in artists and songwriters, as well as in rights, technology, AI tools, and the talent shaping the industry. As one unified business, we will further deepen our position as a preferred global partner to artists, songwriters, and platforms, combining scale with the agility and independence they value. We look forward to this next chapter and to the opportunities it creates for artists, songwriters, and partners.”
“We are excited to begin working together to build something truly exceptional,” said Bob Valentine, Chief Executive Officer of Concord and designated CEO of the combined company. “Both companies were founded to support great artistry and with a deep sense of responsibility to the performers, songwriters, and playwrights we serve. We share a philosophy grounded in artist development, strategic long-term management of IP, and operational discipline. Our greater scale will allow us to invest more in creative talent, global reach, accretive acquisition opportunities, and technology, while preserving the nimble, entrepreneurial spirit that artists and songwriters value most. This is not about replicating the major label model; it’s about using scale to strengthen independence. Together, we will build a company that gives artists more reach and more flexibility – all designed to support their distinct visions.”
