Bertelsmann To Merge BMG With Concord In Major Music Industry Deal

Bertelsmann has announced plans to combine its music arm BMG with rival Concord, creating what is expected to be the world’s fourth-largest music company, behind Universal Music Group, Sony Music, and Warner Music Group.

The cash-and-stock deal will see Bertelsmann take a 67% stake in the combined entity, while Concord’s shareholders will hold the remaining 33% along with a one-time cash payout of $1.16 billion. The merged company is projected to generate revenues of around $2.2 billion and core profits of $730 million in 2026, marking one of the most significant transactions in the music industry in recent years.

Both BMG and Concord rank among the largest independent music companies globally. BMG’s roster includes artists such as Bruno Mars and Kylie Minogue, while Concord represents iconic names like Creedence Clearwater Revival, Miles Davis, and R.E.M..

Bertelsmann CEO Thomas Rabe described the move as one of the biggest deals in the company’s 190-year history. Based on prevailing industry valuation multiples, estimates suggest the combined entity could be valued in the double-digit billions, potentially around $13 billion.

The company expects operational synergies across business functions, technology, and AI to further enhance profitability, though job cuts are anticipated as part of the integration process. Leadership of the new entity will see BMG CEO Thomas Coesfeld take on the role of chairman, while Concord CEO Bob Valentine will serve as chief executive.

The deal is expected to close by late 2026, subject to customary approvals, with Bertelsmann indicating minimal regulatory hurdles. Concord is currently owned by the Michigan Pension Fund, managed by Great Mountain Partners.

With this merger, Bertelsmann is significantly strengthening its position in the global music landscape, further consolidating the independent sector while scaling up to compete more aggressively with the industry’s major players.