Competition regulators in the United States and Germany have approved the merger of BMG and Concord, clearing a major hurdle for the creation of the world’s fourth-largest music company.
The combined entity, valued at approximately $15 billion, will be majority-owned by BMG’s parent, Bertelsmann, which expects the transaction to close in the fourth quarter. Regulatory approvals in other territories remain pending.
The merger unites two of the largest independent music companies. It will rank behind only Universal Music, Sony Music and Warner Music in global scale.
Bob Valentine, currently Concord’s chief executive, will become CEO of the combined company. Thomas Coesfeld will serve as Chairman; he was previously announced as the incoming Chairman and CEO of Bertelsmann, effective January 2027.
Bertelsmann will hold a 67% stake, while affiliates of Great Mountain Partners, existing Concord shareholders, will own the remaining 33%. Those affiliates will also receive a one-time cash payment of $1.16 billion.
Andreas Mundt, President of Germany’s Bundeskartellamt (Federal Cartel Office), said: “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 This will strengthen Bertelsmann’s position in the music business, from which it had largely withdrawn some 20 years ago.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.”
