BMI Announces It Will Be Acquired By A Group Of Investors Led By New Mountain Capital
NEW YORK (CelebrityAccess) — Broadcast Music Inc (BMI) the world’s largest performing rights organization, confirmed months of rumors and announced it will be acquired by a shareholder group led by private equity investor New Mountain Capital, LLC.
As part of the acquisition, New Mountain has additional capital reserves that will be used to fund growth investments, new ventures, and technology enhancements for BMI.
Following the acquisition, BMI’s current President & CEO Mike O’Neill, and the company’s current leadership team will continue to lead the company.
“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,” said Mike O’Neill, BMI President & CEO. “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. We are excited about the many ways New Mountain will accelerate our growth plan, bringing new vision, technological expertise and an outstanding track record of strengthening businesses, all of which will help us build an even stronger future for BMI and our songwriters, composers, and publishers.” He added, “I would also like to thank the BMI Board of Directors and BMI’s shareholders for their excellent stewardship and unwavering support of our creative community since the company’s founding in 1939.”
As part of the agreement, BMI’s current shareholders will allocate $100 million of the proceeds of the sale to BMI’s publisher and songwriter affiliates shortly after the transaction’s closing. The distribution, while not considered royalties, will while not a distribution of royalties, will follow the company’s distribution methodologies, which are based on performance levels over a set period of time.
BMI will provide additional details about the distribution in the coming months.
“BMI has been a trusted guide and champion of music creators from the beginning, and we are privileged to work with the company and its 1.4 million affiliates to build on that incredible legacy,” said Pete Masucci, Managing Director at New Mountain. “There are numerous growth opportunities ahead for BMI with significant potential to generate more value for the work of its songwriters, composers and publishers. We look forward to working together alongside Mike and his team to capitalize on those opportunities for the benefit of all BMI stakeholders.”
“While the music industry has undergone a technology-driven transformation over the past two decades, music infrastructure, including the performing rights ecosystem has been slower to transform,” said Mike Oshinsky, Director at New Mountain. “There is tremendous opportunity to modernize this critical part of music infrastructure and ensure that long-term royalty collections for songwriters, composers and publishers continue to grow. With our support, BMI is ideally positioned to drive this transformation as the only PRO in the world to combine an open-door policy to all music creators with the innovation and commercial drive of a for-profit business.”
Founded in 1999, New Mountain Capitol represents more than 40 billion in assets under management. The company’s portfolio includes investments in diverse sectors from real estate and healthcare to logistics and financial services.
The transaction is subject to approval by BMI shareholders and customary regulatory approvals and is expected to close by the end of Q1 2024.
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