BMG and Harmony affirm merger, with Bertelsmann as majority-owner; Bob Valentine named CEO of mixed firm

It’s been rumored since again in January, and now it’s official: BMG and Harmony are merging.

Each firms confirmed the transfer at present (April 28), alongside some fascinating particulars.

For instance, Harmony boss Bob Valentine will function CEO of the brand new mixed firm, with Thomas Coesfeld as Chairman. (Coesfeld, at present CEO of BMG, additionally steps as much as develop into CEO of BMG mother or father Bertelsmann in January 2027.)

The newly mixed firm’s world headquarters is in Nashville (at present house to Harmony’s HQ) whereas its European headquarters will likely be in Berlin (at present house to BMG’s HQ).

Its publishing division will likely be named BMG Publishing, and its recorded music division will likely be referred to as Harmony Data.

The events anticipate the transaction to shut, following regulatory approvals, within the second half of 2026.

In a press launch issued at present, it was confirmed that the mixed firm will likely be owned roughly 67% by Bertelsmann, and 33% by associates of Nice Mountain Companions, a long-time investor in Harmony.

Associates of Nice Mountain Companions may even obtain a one-time money fee of USD $1.16 billion as a part of the transaction. Different particulars, together with a headline worth, weren’t disclosed.

The press launch at present acknowledged: “[The unified company] is predicted to generate important money circulation to reinvest within the enterprise and gasoline development.

“This features a mid-term ambition to attain $1.2 billion in EBITDA, constructing from a [projected] professional forma EBITDA base of greater than $730 million in 2026, pushed via natural development, M&A, and synergies.”

As a non-public firm, Harmony doesn’t publicly publish its monetary outcomes, however as a part of Bertelsmann, BMG does.

In FY 2025, BMG posted revenues of EUR €900 million (USD $1.02B), with its adjusted working EBITDA reaching an all-time excessive of EUR €284 million ($321M).

Right now’s press launch means that the BMG/Harmony enterprise mixture can “unlock significant worth via higher scale and robust money circulation, enabling continued funding in music rights, artistic expertise, and know-how”.

This can create a “absolutely built-in world music firm spanning music publishing, recorded music, theatrical rights, and digital distribution”, whereas the elevated scale will “allow deeper funding in creativity, next-generation know-how, and world-class expertise”.

Thomas Coesfeld, CEO of BMG and designated Chairman of the mixed firm, mentioned: “We consider it is a really one-of-a-kind alternative to deliver collectively two world-class groups and rosters on the proper second, as scale in rights possession turns into more and more essential to long-term development.

“This transaction accelerates our profitable BMG Subsequent technique by enabling a extra formidable and sustained strategy to investing in artists and songwriters, in addition to in rights, know-how, AI instruments, and the expertise shaping the business.

“As one unified enterprise, we are going to additional deepen our place as a most well-liked world companion to artists, songwriters, and platforms, combining scale with the agility and independence they worth. We stay up for this subsequent chapter and to the alternatives it creates for artists, songwriters, and companions.”

“As one unified enterprise, we are going to additional deepen our place as a most well-liked world companion to artists, songwriters, and platforms, combining scale with the agility and independence they worth.”

Thomas Coesfeld, BMG

Bob Valentine, CEO of Harmony and designated CEO of the mixed firm, mentioned: “We’re excited to start working collectively to construct one thing really distinctive. Each firms have been based to assist nice artistry and with a deep sense of duty to the performers, songwriters, and playwrights we serve.

“We share a philosophy grounded in artist growth, strategic long-term administration of IP, and operational self-discipline.

“This isn’t about replicating the key label mannequin; it’s about utilizing scale to strengthen independence.”

Bob Valentine, Harmony

“Our higher scale will permit us to take a position extra in artistic expertise, world attain, accretive acquisition alternatives, and know-how, whereas preserving the nimble, entrepreneurial spirit that artists and songwriters worth most.

“This isn’t about replicating the key label mannequin; it’s about utilizing scale to strengthen independence. Collectively, we are going to construct an organization that offers artists extra attain and extra flexibility – all designed to assist their distinct visions.”

Collectively, BMG and Harmony have constructed rosters that span artists, songwriters, and works from Jelly Roll, Paul Simon, Lainey Wilson, will.i.am, Jason Aldean, Tina Turner, Diane Warren, and Jean-Michel Jarre, to Creedence Clearwater Revival, Daddy Yankee, Denzel Curry, Hamilton, Phil Collins, R.E.M., and The Sound of Music.

Since 2021, as a part of its Increase investments program, BMG says it has invested greater than $1.5 billion in music rights acquisitions and an equal quantity in signings, licenses, and know-how.

Harmony has invested greater than $3 billion since 2020 throughout publishing, recorded music, theatrical rights, and distribution, with a roster of greater than 125,000 artists and songwriters.

Davis Polk & Wardwell LLP is serving as authorized counsel to BMG. J.P. Morgan is serving as monetary advisor to Harmony and Latham and Watkins LLP and Reed Smith LLP are serving as authorized counsel. Alston & Fowl LLP is advising Nice Mountain Companions.Music Enterprise Worldwide