Music licensing giant BMI is being sold to New Mountain Capital
BMI, the music licensing agency representing thousands of songwriters, including Dolly Parton, Taylor Swift and Kendrick Lamar, has announced that it is being sold to the private equity firm New Mountain Capital.
Broadcast Music Inc, alongside the archival American Society of Composers, Authors, and Publishers (ASCAP), is one of the United States’ major performing rights organisations. They clear the legal rights of music, which allow songs to be played on different formats, including on the radio, online and in retail shops.
The company also distributes billions of dollars collected in royalties to songwriters and music publishers. For the fiscal year of 2022, BMI collected $1.57 billion and distributed $1.47 billion, the most it has ever paid out in a single year.
According to a report in The New York Times, terms of the sale of BMI are yet to be disclosed. In its announcement, the organisation said the sale is yet to be approved by shareholders and a “customary” regulatory review. They expect the deal to be finalised in the first quarter of next year. Some outlets claim that the agreement could be worth $1.7 billion.
“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,” Mike O’Neill, the President and CEO of BMI, explained in a statement.
He continued: “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.”
Interestingly, New Mountain Capital also own Citrin Cooperman, the financial advisory firm that had a hand in the recent trend of music catalogue sales by world-famous artists.
Never Miss A Beat
The Far Out Music Newsletter
All the latest music news from the independent voice of culture.
Straight to your inbox.