BMI Is Engaging In ‘Discussions With Outside Parties’ Over Potential Sale

BMI is exploring potential sale possibilities, a year after its transition into a for-profit entity, according to an internal memo from CEO Mike O’Neill that was obtained by Billboard. In the note to staff, O’Neill said, “Delivering for our affiliates is always our top priority, and we have a responsibility to engage in discussions with outside parties if they can help further that mission. That is exactly what we are doing right now, and no final decisions have been made.”

The discussions come a year after BMI had engaged Goldman Sachs to explore strategic opportunities in 2022, with one of the options at the time being a potential sale; that process ultimately did not lead to a deal. Reuters first reported that talks had reopened over a potential sale now. A spokesperson for BMI declined to comment.

In the memo, O’Neill wrote that after ending the strategic opportunities process last year, BMI chose to invest in the company “to grow the value of our affiliates’ music,” and that the change to the for-profit model, in addition to that investment, “has only intensified that outside interest.”

“It’s an exciting time for BMI and we’re in a strong position,” O’Neill wrote. “And the most important thing for us to do is keep focus and continue the great work that makes BMI the best PRO in the business. The future is filled with potential and there is no better team to tackle the numerous opportunities that lie ahead for our company and our affiliates.”

BMI, founded in 1939, represents more than 20 million works by more than 1 million songwriters, composers and publishers, including artists like Taylor Swift, Rihanna and Kendrick Lamar. In its most recent annual report, for the year ended June 30, 2022, the performance rights organization tallied revenues of $1.573 billion and distributed $1.471 billion to songwriters, its highest mark ever.

Read O’Neill’s full note below.

Hi Team,

A few press articles have come out today speculating that BMI is considering a sale. I am reaching out now because I want you to hear the background directly from me.

Not surprisingly, interest in BMI has continued since we announced a year ago that we were no longer considering a sale of our company. You may recall this was one of the options on the table when we were evaluating strategic opportunities to best position BMI for the future. Since then, the success of our business model change and our commitment to investing in BMI to grow the value of our affiliates’ music has only intensified that outside interest.

Delivering for our affiliates is always our top priority, and we have a responsibility to engage in discussions with outside parties if they can help further that mission. That is exactly what we are doing right now, and no final decisions have been made. By its very nature, speculation can often contain mischaracterizations and inaccurate information. Please don’t be distracted by this and know that I will update you directly on any new developments.

It’s an exciting time for BMI and we’re in a strong position. And the most important thing for us to do is keep focus and continue the great work that makes BMI the best PRO in the business. The future is filled with potential and there is no better team to tackle the numerous opportunities that lie ahead for our company and our affiliates.

Thank you, as always, for all you do.

MON