Broadcast Music Inc (BMI), the music rights company representing top songwriters such as Lady Gaga, Taylor Swift and Rihanna, is once again exploring options including a sale after it ditched its non-profit model, people familiar with the matter said.
Reuters reports BMI has turned to Goldman Sachs Group, the investment bank that also advised it on deal discussions last year, for guidance as it fields interest from potential acquirers, including private equity firms, the sources said, cautioning that the company may still decide not to sell itself.
The company also explored a sale last year when it was run as a non-profit and handed the vast majority of its profits to music artists and their publishers.
For interested parties who submitted offers last year, the fact that BMI did not keep more money for itself made it more difficult to justify the price tag of more than $2 billion that the company was seeking, the sources said.
BMI reported revenue of about $1.57 billion for the fiscal year that ended on June 30, 2022, and paid out about $1.47 billion to its songwriters, composers and publishers, according to its last annual report.
The company generates about $145 million in 12-month earnings before interest, taxes, depreciation and amortization, according to the sources.
The sources asked not to be identified because the matter is confidential. Spokespeople for BMI, which is controlled by several TV networks and radio broadcasters, and Goldman Sachs declined to comment.
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