BMG and Concord have confirmed that they have entered into a definitive agreement to combine their businesses.
In a statement, BMG and Concord said they are “creating the leading independent music company in the world”.
Operating under the BMG name, the combined company will bring together the two businesses to establish a “scaled, global company delivering superior service to artists, songwriters, and partners – firmly grounded in an independent, artist-first model”.
The proposed merger was first reported earlier this year. It is subject to regulatory approval.
“The combination comes amid significant transformation in the global music market, where scale, global reach, and technology investment are increasingly critical to remain competitive,” added the statement.
It follows Universal Music Group’s acquisitions of Downtown and PIAS.
While terms of the transaction were not disclosed, the combined BMG and Concord is valued at $14 billion, according to the FT.
Even with the $2.2 billion in combined revenues, BMG and Concord will still be some way behind the three major music companies in terms of market share.
BMG and Concord will form a fully integrated global music company spanning music publishing, recorded music, theatrical rights and digital distribution. According to the announcement, the merger will enable “deeper investment in creativity, next-generation technology and world-class talent, and will preserve the entrepreneurial approach that artists, songwriters, and playwrights value”.
We look forward to this next chapter and to the opportunities it creates for artists, songwriters, and partners
Thomas Coesfeld
The unified company aims to expand its presence in growing markets, deepen artist and songwriter partnerships, and capture new revenue streams across platforms and formats.
It is expected to generate significant cash flow to reinvest in the business and fuel growth. This includes 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 through organic growth, M&A and synergies.
“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,” said Thomas Coesfeld, CEO of BMG and designated chairman of the combined company. “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.”
"We are excited to begin working together to build something truly exceptional," said Bob Valentine, chief executive officer of Concord and designated CEO of the combined company. “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.”
This is not about replicating the major label model; it’s about using scale to strengthen independence
Bob Valentine
Collectively, the companies have invested billions of dollars in music rights. The combined rosters span artists, songwriters and works from Jelly Roll, Paul Simon, Lainey Wilson, will.i.am, Jason Aldean, Tina Turner, Diane Warren, and Jean-Michel Jarre, to Creedence Clearwater Revival, Daddy Yankee, Denzel Curry, Hamilton, Phil Collins, REM and The Sound of Music.
Since 2021, as part of its Boost investments program, BMG has invested more than $1.5 billion in music rights acquisitions and an equal amount in signings, licences and technology. BMG has doubled its operating EBITDA and delivered profitability under its BMG Next strategy.
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 around the world.
BMG x Concord – the combined company
Concord's Bob Valentine is designated CEO of the combined company.
Thomas Coesfeld, who becomes chairman, had already been confirmed as the new chairman and CEO of parent company Bertelsmann, effective January 2027.
A joint management team drawn from both companies will lead the business. The newly formed company's global headquarters will be in Nashville, with Berlin serving as its European headquarters.
Its publishing division will be named BMG Publishing, and its recorded music division will be called Concord Records.
The combined company will be owned approximately 67% by Bertelsmann and approximately 33% by affiliates of Great Mountain Partners.
Affiliates of Great Mountain Partners will also receive a one-time cash payment of $1.16 billion.
"Bertelsmann will continue to support BMG’s growth trajectory in the dynamic and fast-growing global music market," added the statement.
The transaction – subject to customary closing conditions including regulatory approvals – is expected to close in the second half of 2026.
Davis Polk & Wardwell LLP is serving as legal counsel to BMG. JP Morgan is serving as financial advisor to Concord; Latham and Watkins LLP (led by partners Nadia Sager, Javier Stark and Shanta Chirravuri) and Reed Smith LLP are serving as legal counsel. Alston & Bird LLP is advising Great Mountain Partners.
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