Citing sources, Bloomberg reported on the time that the music rights assortment agency set a price ticket of as much as $2 billion or $3 billion for sure potential patrons and that BMI executives had hoped to promote for at the least $1.5 billion.
BMI enlisted Goldman Sachs as an advisor in March 2022 to assist evaluate strategic alternatives.
Now, based on a report from Reuters, printed on Tuesday (July 25), BMI is, “as soon as once more exploring choices together with a sale”.
Citing individuals acquainted with the matter, Reuters studies that BMI has turned to Goldman Sachs “for steerage because it fields curiosity from potential acquirers, together with personal fairness companies”.
The information arrives round 9 months after BMI revealed that its not-for-profit enterprise mannequin, beneath which it had operated for the reason that PRO was based in 1939, was altering to a for-profit mannequin.
The information was introduced by the corporate in a publish printed to BMI’s web site, which included a word despatched by BMI President & CEO Mike O’Neill to the group’s associates.
Inside his word, O’Neill wrote that the choice to vary BMI’s enterprise mannequin comes “after a complete and cautious evaluation on how finest to place our firm for the long run”.
He argued that the transfer “will open up new and necessary alternatives for us to put money into our enterprise”.
Added O’Neill: “Merely put, progress for BMI means progress for our associates. And most significantly, our purpose is to proceed to extend our royalty distributions at a fair better price than we’ve got earlier than.”
O’Neill additionally commented on that strategic evaluate course of from March 2022, stating in his word to BMI associates in Otober that, “BMI started a strategic evaluate earlier this yr to guage alternatives to develop our firm and take advantage of our evolving trade for our associates”.
He added: “The one factor we frequently heard all through that course of strengthened what we’ve got been pondering for a while: the necessity for us to put money into BMI and function in a extra business and forward-thinking method. Progress requires funding.
“And on this new mannequin, we will now construction, fund and function new strategic alternatives, undertake new applied sciences and improve and develop our providers and merchandise in a method that beneath our outdated mannequin would have come on the expense of distributions.”
Reuters studies, citing sources, that BMI is hopeful that altering to a for-profit enterprise “will make it a extra enticing acquisition goal”.
Those self same sources famous, nevertheless, that BMI, might resolve to not undergo with a sale.Music Enterprise Worldwide