BMG and Concord have announced a definitive agreement to merge their businesses, forming the world’s leading independent music company. The combined entity will operate under the BMG name, with divisions called BMG Publishing and Concord Records. Global headquarters will be established in Nashville, with Berlin serving as the European headquarters.
Bob Valentine, currently CEO of Concord, will serve as CEO of the combined company. Thomas Coesfeld, currently CEO of BMG, will serve as Chairman before transitioning to the role of CEO of parent company Bertelsmann effective January 1, 2027. The combined company will be owned approximately 67% by Bertelsmann and approximately 33% by affiliates of Great Mountain Partners, which will also receive a one-time cash payment of $1.16 billion.
The merger brings together two fully complementary businesses spanning music publishing, recorded music, theatrical rights, and digital distribution. Together, the companies have invested billions of dollars in music rights and assembled one of the most diverse rosters in the industry, encompassing artists and songwriters including Jelly Roll, Paul Simon, Lainey Wilson, Tina Turner, Phil Collins, Creedence Clearwater Revival, Daddy Yankee, and the catalogs behind Hamilton and The Sound of Music, among many others.
The combined company is expected to generate significant cash flow and has set 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 by organic growth, mergers and acquisitions, and synergies. Since 2021, BMG has invested more than $1.5 billion in music rights acquisitions and an equal amount in signings, licenses, and technology, doubling its operating EBITDA in the process. Concord has invested more than $3 billion since 2020 across publishing, recorded music, theatrical rights, and distribution, supporting more than 125,000 artists and songwriters worldwide.
The transaction is subject to customary regulatory approvals and is expected to close in the second half of 2026.
Support:
Davis Polk & Wardwell LLP is serving as legal counsel to BMG. J.P. Morgan is serving as financial advisor to Concord, with Latham and Watkins LLP and Reed Smith LLP serving as legal counsel. Alston & Bird LLP is advising Great Mountain Partners.
KEY QUOTES:
“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. 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.”
Thomas Coesfeld, Chief Executive Officer, BMG
“We are excited to begin working together to build something truly exceptional. 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.”
Bob Valentine, Chief Executive Officer, Concord
