BMI is being sold to a New Mountain Capital-led shareholder group in a deal that is expected to close by the end of the first quarter of 2024.
While terms of the deal were not disclosed, the buyer announced that as part of the deal BMI’s current shareholders will allocate $100 million of the sale’s proceeds to songwriters and publishers affiliates “in recognition of [their] creativity.” That planned payout will adhere to BMI’s distribution methodologies.
Billboard reports the deal still needs to be approved by the broadcaster shareholders that have long owned the performance rights organization and will also need regulatory approval.
Initially, sources said that the bidding process for BMI had yielded about a $1.7 billion valuation, but sources subsequently said the price tag was more in the range of $1.3 billion to $1.5 billion. Neither New Mountain or BMI would comment on price.
After the deal closes, BMI president and CEO Mike O’Neill and his leadership team will continue to run the organization, according to an announcement.
“Today marks an exciting new chapter for BMI that puts us in the best possible position to stay ahead of the evolving industry and ensure the long-term success of our music creators,” O’Neill said in a statement. “New Mountain is an ideal partner because they believe in our mission and understand that the key to success for our company lies in delivering value to our affiliates.”
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