BMG and Concord are merging, the two companies announced on Tuesday, in a major move that combines the music business’s two largest independent music companies and creates a new entity closer in scale to the major three record labels.
Financial details of the agreement weren’t disclosed, though Bloomberg previously reported the deal could be worth as much as $7 billion. BMG’s parent company, the German media giant Bertelsmann, will own 67 percent of the company while Green Mountain Partners will own 33 percent. The deal’s closure is subject to regulatory approval.
The new company will operate under the BMG name. BMG’s current CEO Thomas Coesfeld, who is set to become the CEO of BMG parent company Bertelsmann, will become BMG’s chairman, while Concord CEO Bob Valentine will be BMG CEO. The new company’s publishing division will be called BMG publishing, while the recorded music division will
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