Competition authorities in the United States and Germany have approved the merger of BMG and Concord, two of the world’s largest independent music companies. The combined entity will become the fourth-largest music company globally, valued at approximately $15 billion, behind Universal Music Group, Sony Music Entertainment, and Warner Music Group. Regulatory reviews in other jurisdictions remain ongoing, but parent company Bertelsmann expects the transaction to close in the fourth quarter.
Under the terms of the deal, Bertelsmann will hold a 67% stake in the merged company, while affiliates of Great Mountain Partners, current Concord shareholders, will own the remaining 33%. Those affiliates will also receive a one-time cash payment of $1.16 billion. Bob Valentine, currently Concord’s chief executive, has been appointed CEO of the combined group. Thomas Coesfeld will serve as Chairman; he was previously announced as the incoming Chairman and CEO of Bertelsmann, effective January 2027.
Andreas Mundt, President of Germany’s Bundeskartellamt (Federal Cartel Office), which cleared the merger, stated:
“The merger between BMG and Concord will create one of the largest music companies in the world. This will strengthen Bertelsmann’s position in the music business, from which it had largely withdrawn some 20 years ago. In the markets affected, the joint venture faces particular competition from music companies which, in some cases, are even considerably larger, such as Universal Music, Sony Music and Warner Music. As a result, the project could be cleared despite its considerable scale.”
