Bertelsmann announced on Tuesday that it will combine its music arm BMG with competitor Concord in a transaction structured as a mix of cash and shares. Under the terms, Bertelsmann will hold 67% of the merged business while Concord shareholders will receive a 33% equity stake plus a one-time cash payment of $1.16 billion.
Company forecasts for the combined entity put pro forma revenue at $2.2 billion and core profit at $730 million for 2026. Those figures position the newly formed group as the industry’s fourth largest, behind the three major labels.
Both BMG and Concord are among the largest independent music companies. BMG’s roster includes artists such as Bruno Mars and Kylie Minogue. Concord’s catalogue comprises recordings by acts including Creedence Clearwater Revival, Miles Davis and R.E.M.
Speaking about the transaction, Bertelsmann Chief Executive Thomas Rabe described the deal as one of the largest in the company’s more than 190-year history. He declined to disclose a precise company valuation but said the enterprise value would be in the double-digit billions. Using the midpoint of prevailing music-sector earnings multiples - currently in a range of about 15 to 20 times - the calculation implies an enterprise value of roughly $13 billion.
Rabe noted that the music business already carries an above-average core profit margin of 33%, and he said management expects additional profitability gains from combining the two companies and from efficiencies in IT and artificial intelligence.
He also acknowledged that workforce reductions will be necessary as part of the integration, but provided no estimate of the number of roles affected. The deal envisions leadership continuity from both organisations: BMG Chief Executive Thomas Coesfeld, who is slated to become Bertelsmann CEO in 2027, will serve as chairman of the combined group, while Concord Chief Executive Bob Valentine will assume the role of CEO.
Bertelsmann indicated it does not anticipate major regulatory obstacles and is targeting a closing date in September or October 2026. Concord’s ownership includes the Michigan Pension Fund, via an investment managed by U.S.-based asset manager Great Mountain Partners.
Deal scale and context
The transaction is notable both for its size within Bertelsmann’s corporate history and for its scale inside the music industry. The structure - majority ownership by Bertelsmann with a significant stake retained by Concord shareholders and a substantial cash payment - sets out a combined operating platform expected to benefit from catalogue depth and scale.
Leadership and timeline
Management transitions are specified: Thomas Coesfeld will be chair of the combined company while Bob Valentine will serve as CEO. The companies expect to complete regulatory review and finalise the transaction in the autumn of 2026, assuming no major obstacles arise.