BMI officially scrapped sales plans, report says
About five months after enlisting Goldman Sachs to pursue “strategic opportunities,” including a possible sale, Broadcast Music, Inc. is no longer in the market, officials confirmed.
The performing rights organization’s failed effort to find a willing buyer follows an announcement in March by BMI President and CEO Mike O’Neill, who relayed that “music n ‘has never been more valuable” and asserted that “we are in an unprecedented time full of opportunity”. ”
Despite these upbeat comments, the continued growth of music industry revenue and the billions investors have poured into song rights since the start of 2020, Bloomberg reported that Goldman was unable to connect the PRO (which along with ASCAP but not SESAC and GMR remains subject to a consent decree) with a buyer, as originally pointed out.
According to the same outlet, purportedly nonprofit BMI received “a few offers” from potential buyers, but “most” of the parties ultimately opted out of the deal or made “complicated offers.” that didn’t work for BMI”.
As of this writing, BMI has not addressed the issue via a statement on its website, nor does Goldman appear to have publicly commented on the matter. But according to the mentioned outlet, the PRO has definitely communicated that a sale “is no longer an avenue we are considering.”
The entity is reportedly seeking a minimum deal of $1.5 billion, and unnamed sources with knowledge of the matter say executives have asked potential bidders for up to $3 billion. Similarly, Concord shelved its own sale plans — and continued to make major acquisitions — after apparently turning down a $5 billion offer.
Despite these developments and the state of the broader market, companies such as Warner Music-backed Tempo Music Investments, Round Hill Music and Toronto-based Anthem Entertainment (which bills itself as “one of the world’s leading content and services independent music and entertainment companies”) would continue to seek (presumably substantial) gains via sales.
Amid a downturn in the global song rights space – Hipgnosis just unveiled a royalty-backed bond of over $220 million – it’s worth noting that some companies are still making high-profile pieces. .
BMG, for example, has had catalog deals with the likes of Simple Minds and Jean-Michel Jarre (along with buying top independent labels) so far in 2022, while HarbourView Equity Partners has bought from the intellectual property of Lady A and Brad Paisley late last month.
Meanwhile, Exceleration Music wrapped up July with the acquisition of Dutch indie label Heroic Music Group, and Litmus Music (which today announced Monti Olson as its chairman) set sail at the start of the month. August with $500 million to spend on catalogs.