Bertelsmann to merge BMG and Concord, creating No. 4 music company

Bertelsmann and Great Mountain Partners announced a definitive agreement Tuesday to combine BMG and Concord into the world's fourth-largest music company, according to Reuters.reuters+1
Bertelsmann will hold 67% of the combined entity, while Concord's shareholders receive 33% plus a $1.16 billion cash payment, with closing expected in Q4 2026.marketscreener
The merged company will operate as BMG, headquartered in Nashville, with Concord CEO Bob Valentine leading and catalogs spanning over four million songs.marketscreener+1

Bertelsmann and Great Mountain Partners announced on Tuesday a definitive agreement to combine their music businesses BMG and Concord, creating the world's fourth-largest music company and reshaping the landscape of an industry long dominated by three major labels.marketscreener+1

The cash-and-stock deal gives Bertelsmann a 67 percent stake in the combined entity, while Concord's shareholders, managed by Great Mountain Partners, will retain 33 percent and receive a one-time cash payment of $1.16 billion. The merged company is projected to generate pro forma revenue of $2.2 billion and EBITDA of $730 million in 2026, with a mid-term EBITDA target of $1.2 billion.marketscreener

A 'Fourth Major' Takes Shape

The combined company will operate under the BMG name, with global headquarters in Nashville and European headquarters in Berlin. Concord CEO Bob Valentine will serve as CEO of the new entity, while BMG CEO Thomas Coesfeld — who is also the designated next CEO of Bertelsmann — will serve as chairman of the board.marketscreener

Together, the companies will hold more than four million songs, uniting catalogs spanning artists and songwriters from Tina Turner and Paul Simon to Jelly Roll and will.i.am on the BMG side, alongside Concord's collection of more than 1.3 million songs, recordings, and musicals. The deal positions the new BMG as a formidable competitor behind Universal Music Group , Sony Music, and Warner Music Group , which held roughly 24, 23, and 12 percent global market share respectively as of recent estimates.variety+1

Strategic Rationale

Thomas Rabe, chairman and CEO of Bertelsmann, called the merger "one of the largest in Bertelsmann's more than 190-year history," noting it advances the company's Boost+ strategy of scaling businesses through partnerships. Coesfeld described the two companies as "an excellent strategic fit," emphasizing their shared focus on IP-driven, catalog-centric business models built for "the streaming and AI era".marketscreener

Bloomberg first reported in late January that Bertelsmann was weighing a bid for Concord at a valuation of up to $7 billion. Billboard separately reported the potential deal could exceed $6.6 billion. Industry observers noted the merger addresses BMG's leadership succession, as Coesfeld is expected to ascend to the top role at Bertelsmann.reuters+3

What Comes Next

The transaction is expected to close in the fourth quarter of 2026, pending regulatory approval in the United States, the European Union, and the United Kingdom. Jon Rotolo of Great Mountain Partners said the combined company is "positioned as the premier partner for music-centric talent and creators with the scale of a major and the service and focus of an independent".marketscreener

Sources (20)