Major music companies BMG and Concord, which represent artists like Tina Turner and Jelly Roll, said they are merging to create the world’s fourth-largest music company.
BMG and Concord are aiming to operate the largest “independent music company in the world,” behind the music industry’s “Big Three” — Universal Music Group, Warner Music Group and Sony Music Entertainment.
Financial terms were not disclosed. The combined company, which will operated under the BMG name, is valued at $14 billion, Bloomberg.
In a statement, the companies said the goal of the merger is to create a wider global reach for its artists and songwriters.
The new BMG will be involved in music publishing, recorded music, theatrical rights and digital distribution. Now the sounds of Jason Aldean, Daddy Yankee, Korn, “Hamilton,” Phil Collins, R.E.M. and “The Sound of Music” will all be represented by the same company.
“Both companies were founded to support great artistry and with a deep sense of responsibility to the performers, songwriters, and playwrights we serve,” Bob Valentine, the company’s new chief executive, said in the statement. “Our greater scale will allow us to invest more in creative talent … while preserving the nimble, entrepreneurial spirit that artists and songwriters value most.”
Under this deal, BMG is now of comparable size to Warner Records, the smallest of the “Big Three.” With its combined capabilities and indie-first approach, the company seeks to have heightened appeal for both early career and well-established acts.
This effort comes at a competitive time in the music industry, when labels are attempting to harness AI tools and internet virality to their advantage. In this new tech-driven landscape, companies are making big investments in developing new music-focused technologies. UMG, for example, recently struck a deal with AI giant Nvidia.
Berlin-based BMG was first formed in 2008 by its parent company, the international German media company Bertelsmann. It represents over 3 million songs and recordings.
Concord, based in Nashville, owns a catalog of over 1.3 million recordings and supports over 125,000 musicians. The new joint company will maintain global headquarters in Nashville, with its European headquarters in Berlin.
In recent years, both BMG and Concord have honed in on music acquisitions. Since 2021, BMG has invested over $1.5 billion in music rights acquisitions and a similar amount in signings and licenses. Concord has also invested over $3 billion since 2020 in publishing, recorded music and distribution.
Serona Elton, the director of the Music Industry Program at the University of Miami, said the combined power of these catalogs could bring success.
“In terms of a combined market share, it is relatively small, which limits its impact on the competitive landscape of the industry overall,” Elton said in a statement. “However, the specific music catalog [that] the newly combined entity controls is highly sought after, which strengthens its negotiating position.”
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