Non-Profit No Longer. BMI Is Being Acquired By An Investor Consortium

[RAMROD 107,673]

An investor consortium spearheaded by New Mountain Capital has reached an agreement to purchase Broadcast Music Inc (BMI), a major player in the music rights industry that represents renowned songwriters such as Lady Gaga, Taylor Swift, and Rihanna.

The deal, the terms of which were not disclosed, will see New Mountain Capital, overseeing assets exceeding $45 billion, acquire BMI from its existing shareholders. In a strategic move, New Mountain Capital has earmarked additional capital to fuel growth investments, introduce new initiatives, and implement technology upgrades aimed at enhancing BMI's services for songwriters, composers, and publishers. CapitalG is set to acquire a passive minority stake in BMI as part of the transaction.

Having transitioned away from its non-profit model, BMI explored various options, with Reuters first reporting in July that a sale was under consideration. New Mountain Capital's commitment to technology upgrades aligns with industry trends, aiming to bolster BMI's capabilities in an ever-evolving digital landscape. Following the completion of the deal, BMI's current shareholders will allocate $100 million from the sale proceeds to distribution partners, contingent on performance metrics over a specified period. The acquisition is projected to conclude by the end of the first quarter of 2024. Established in 1939, BMI manages public performance rights for over 20 million musical works created and owned by more than 1.3 million songwriters, composers, and music publishers, licensing these works to digital streaming services, radio, television stations, and other music users.

Goldman Sachs served as the financial advisor to BMI, while Fried, Frank, Harris, Shriver & Jacobson provided legal counsel. New Mountain received advisory support from Moelis & Co and legal guidance from Simpson Thacher & Bartlett. The acquisition underscores the dynamic shifts in the music rights landscape and signals a strategic move by investors to capitalize on the evolving needs of the industry, blending financial prowess with technological foresight.

https://wallstreetai.substack.com/p/november-22nd-2023-financial-outlook#§new-mountain-capital-led-investor-group-to-acquire-bmi-a-music-rights-giant-representing-top-songwriters

[Nemo 4,276]

Shouldn't be allowed. 

[Maxine Puth 9,053]

3 hours ago, RAMROD said:

songwriters such as Rihanna.

 

Edit: upon some post shade research it seems she does have co-writer credits on about half her songs. 

[bionic 48,492]

27 minutes ago, Maxine Puth said:

 

Edit: upon some post shade research it seems she does have co-writer credits on about half her songs. 

TBF Rihanna is no doubt the "change a word, take a third" type and she is infamous for her writers camps and being offered up songs already written and produced