BMG, Concord Merger Closes; Valentine Named CEO
The BMG-Concord deal is officially done, creating an independent music company with more than 4 million works spanning publishing, recorded music, theatrical rights, digital distribution and film and TV.
Bertelsmann holds a 67% stake and affiliates of Great Mountain Partners own the remaining 33%. GMP received a one-time cash payment of $1.16b.
Announced April 28, the merger, which positions BMG for significantly greater scale and investment capacity, has received all required regulatory approvals and closes with BMG retaining its name. Nashville will serve as the company’s global headquarters; Berlin will remain its European HQ.
Bob Valentine, formerly CEO of Concord, becomes CEO of the combined BMG, while Thomas Coesfeld, who has led BMG through its recent growth and restructuring, becomes chairman. Coesfeld, Bertelsmann’s Johannes von Schwarzkopf and Rolf Hellermann, Great Mountain’s Alex Thomson and Concord founding partner Steve Smith sit on the board.
The consummation follows a strong first half for BMG; it generated €444m in H1 revenue, up 5% reported and 8% organically, with adjusted operating EBITDA rising 4% to €127m, maintaining a 29% margin. The company also made its biggest-ever first-half investment in music rights, bringing its total catalog investment through Bertelsmann’s Boost program to $1.8b since 2021.
The two entities bring together complementary catalogs and rosters under a creator-first model. Targeting midterm revenue of more than $2.5b and EBITDA of $1.2b, BMG is emphasizing increased investment in artists, songwriters, playwrights, music rights and technology.
“The completion of this transaction marks the beginning of a new chapter for BMG, creating a business with the scale and resources equipped for the future,” Coesfeld said. “We believe that investing in creators, music rights and AI will allow us to unlock new opportunities for artists and writers in a rapidly evolving industry.”
Valentine added, “We have brought together exceptional teams, celebrated catalogs, diverse and talented rosters and a shared belief that creative talent deserves both dedicated advocacy and sustained investment.”
Existing client and partner relationships will continue without interruption as the newly reconstituted BMG marches full steam ahead.