BMG Rights Management, the music arm of Bertelsmann, is reportedly exploring a potential purchase of Concord in a transaction that could be valued at as much as $7 billion, according to reporting from Bloomberg citing people familiar with the matter.
Sources said BMG is considering an offer that would include both cash and stock components for Concord. The sources, who asked not to be identified because the negotiations are private, emphasized that talks remain in progress and there is no certainty the parties will reach an agreement.
If the companies agree to a transaction, the combined group would rank among the world’s largest music companies and would be counted among the largest deals in the history of the music industry. Both BMG and Concord are already positioned as major independent record labels on a global scale.
According to the people familiar with the discussions, Concord Chief Executive Officer Bob Valentine is expected to assume leadership at BMG Rights Management should the acquisition be completed.
The discussions are not the first time Concord has explored a sale. The company engaged in talks about a potential transaction approximately five years ago, during which reports indicated it had sought in excess of $5 billion, but that earlier process did not result in a completed deal.
Details available so far are limited to what was reported by Bloomberg and the description provided by those familiar with the matter. The ownership stake in Concord is heavily held by the State of Michigan Retirement System, which is identified as the majority owner in the current reporting.
At this stage, the situation remains fluid: the structure of any final offer, the timing of discussions, and whether parties will bridge their differences remain open questions. Observers will be watching for confirmations from either company or further reporting that sheds light on the terms and trajectory of the negotiations.