BMI to pay Songwriters & Publishers $100M in bonuses after sale to New Mountain Capital

UPDATED: A New Mountain Capital-led shareholder group has acquired BMI. Current shareholders must still approve the sale, which is expected to be completed in the first quarter of 2024.

With a repertoire of 22.4 million songs from more than 1.4 million copyright owners, BMI is alongside ASCAP. one of the two largest Performing Rights Organizations (PROs) in the US.

New Mountain Capital has more than $45 billion in assets under management.

Details of the deal worth an estimated $2 billion were not disclosed, but $100M of the proceeds will be distributed to member songwriters and music publishers.

“BMI’s current shareholders will allocate $100 million of the proceeds of the sale to affiliates shortly after the transaction closing,” according to the statement announcing the sale. “The allocation of those funds, while not a distribution of royalties, will be in keeping with the company’s distribution methodologies, which are based on performance levels over a set period of time. BMI will work to finalize an equitable payout plan for this allocation in the coming months.”

BMI’s President and CEO Mike O’Neill, and his leadership will continue to lead the company following the closing, according to the announcement.

“Today marks an exciting new chapter for BMI that puts us in the best possible position to stay ahead of the evolving industry and ensure the long-term success of our music creators,” said O’Neill. “New Mountain is an ideal partner because they believe in our mission and understand that the key to success for our company lies in delivering value to our affiliates. We are excited about the many ways New Mountain will accelerate our growth plan, bringing new vision, technological expertise and an outstanding track record of strengthening businesses, all of which will help us build an even stronger future for BMI and our songwriters, composers and publishers.”

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.