As originally reported by Radio Ink in November, the sale of Broadcast Music, Inc., best known as BMI, to investment firm New Mountain Capital has officially closed. The transaction passed all necessary shareholder and regulatory checks needed for its finalization.
While no official number has been released, the sale price was estimated to be between $1 billion and $1.5 billion for the performance rights organization. As part of the deal, BMI’s former shareholders are allocating $100 million from the sale’s proceeds to its affiliates.
This allocation, expected to be distributed in the spring, aims to support BMI’s affiliates though it does not constitute a royalty distribution. The method of allocation will follow BMI’s established distribution principles, based on performance levels during a predefined timeframe.
The sale has also injected some much needed cash to several radio companies holding equity interests, including $25.4 million to Audacy and around $100 million for iHeartMedia, as reported by RBR+TVBR.
BMI President & CEO Mike O’Neill will continue in his role.
O’Neill stated, “Our partnership with New Mountain charts an incredibly exciting new course for BMI and our songwriters, composers and publishers. New Mountain shares our vision to build value for our affiliates and invest in their future success. With their support, advanced level of innovation and resources, we are now in the best possible position to accelerate our growth plan and explore new opportunities to benefit our creative community.”
New Mountain Managing Director Pete Masucci commented, “We are thrilled to officially begin our partnership with BMI. We believe in BMI’s mission and the music creators they represent, and we are looking forward to helping BMI build on their momentum to deliver maximum value to their affiliates.”
New Mountain Director Mike Oshinsky said, “Mike O’Neill and his team have set a dynamic path forward for BMI. We are excited to help modernize the performing rights space and support BMI’s mission of serving songwriters, composers and publishers and growing their royalty distributions for the long-term.”