BMI, the world’s largest performing rights organisation, has been bought by investment firm New Mountain Capital for an undisclosed amount. New Mountain’s deal with BMI’s current shareholders includes additional capital to support technology advancements and growth investments for its affiliates. The agreement also allocates $100m to affiliates to acknowledge the company’s representation of songwriters, composers, and publishers over the years. The acquisition follows BMI’s recent announcement of raising its fee share from 10% to 15% a year after the music rights organisation shifted from a not-for-profit model to a for-profit operation.
Mike O’Neill, BMI President and CEO, stated that New Mountain Capital was an ideal partner as they shared the same interests in boosting the growth prospects of music creators. The transaction is still pending shareholder approval but is expected to close by the first quarter of 2024, with Goldman Sachs serving as a financial advisor to BMI.
Tibor Heskett, Mixmag’s Digital Intern, reported on the sale and emphasised O’Neill’s celebration of the acquisition as an “exciting new chapter for BMI that puts [it] in the best possible position to stay ahead of the evolving industry and ensure the long-term success of our music creators.” O’Neill added, “We are excited about the many ways New Mountain will accelerate our growth plan, bring new vision, technological expertise, and an outstanding track record of strengthening businesses”.
As one of the leading performance rights organisations in the world, BMI provides composers, songwriters, and music publishers with licenses to enable them to earn money. In today’s changing landscape, music rights organisations are under pressure to provide greater value to music creators. BMI’s sale to an investment firm with considerable assets under management signals a broader trend of music industry acquisitions
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