In the world of music, big changes are happening behind the scenes. BMI, one of the major players when it comes to collecting royalties for songwriters, is shaking things up with a big sale.
Sources say BMI will be acquired by the investment firm New Mountain Capital for a reported $1.7 billion. Now, that’s a lot of cash to exchange hands! This deal still needs approval from shareholders and regulators, but both sides aim to finalize everything by early 2024.
It’s an interesting move for BMI, which announced plans over a year ago to switch from non-profit to for-profit status before considering a sale. That change faced some criticism from songwriter advocates who had concerns. Along with ASCAP, BMI is a major licensing organization that collects money whenever songs are played on the radio, streaming services, or in stores – putting royalties in songwriters’ pockets.
Michael O’Neill, BMI’s President and CEO, seemed optimistic about the new partnership. In a statement, he said New Mountain understands BMI’s mission to provide value for songwriters. He believes their expertise in technology and track record of strengthening businesses will help BMI build an even stronger future.
New Mountain has invested in other entertainment and media companies too. They’ve supported the growth of businesses like Citrin Cooperman, an advisory firm that knows the ins and outs of the booming music catalog market.
Only time will tell how this acquisition affects BMI and the music industry. But one thing is clear – the beat goes on, and the world of music licensing just got a little more in tune.
