NEW YORK (CelebrityAccess) — Private equity investor New Mountain Capital announced that after receiving the necessary shareholder and regulatory approvals, it has completed the previously announced acquisition of the formerly non-profit performance rights organization Broadcast Music, Inc.
“Our partnership with New Mountain charts an incredibly exciting new course for BMI and our songwriters, composers, and publishers,” said Mike O’Neill, who will remain President & CEO of BMI. “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.”
The price for BMI was not disclosed, but as part of the deal, BMI will distribute approximately $100 million from the sale to its affiliated songwriters and music publishers. The timing of the fund allocation will take place in the first or second quarter of 2024 and while not technically a distribution of royalties, the payout will be in line with BMI’s distribution methodologies, which are based on performance levels over a set period of time.
“Our partnership with New Mountain charts an incredibly exciting new course for BMI and our songwriters, composers, and publishers,” said Mike O’Neill, who will remain President & CEO of BMI. “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.”
“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,” added Mike Oshinsky, Director at New Mountain.
Originally founded in 1939 as a response to the near monopoly held by ASCAP, BMI was positioned as an alternative source of licensing for all music users. BMI entered into a consent decree with the Justice Department and played a significant role in pioneering the practice of selling “blanket licenses” for music use, instead of licensing individual songs.
