Broadcast Music Inc (BMI), which represents the rights of more than 1.3 million songwriters, composers and publishers, has revived discussions with suitors over a possible takeover, according to sources familiar with the matter.
The New York-headquartered performance rights giant is engaged in ongoing dialogue with prospective buyers of the company after ruling out a possible sale as part of a strategic review process last August, said the sources. Goldman Sachs is still advising BMI on the discussions, they added.
Refreshed marketing materials have been distributed to interested parties, which pitch BMI off 2023 run-rate EBITDA of USD 145m-USD 150m, the sources said. For 2022, the company reported record-breaking revenue of USD 1.57bn and paid out roughly USD 1.47bn to its portfolio of performers that includes Lady Gaga, Eminem and Ed Sheeran.
Since drawing a line under a sale of the company in 2022, BMI has transitioned from a not-for-profit business model used by rivals like American Society of Composers, Authors and Publishers (ASCAP) to a for-profit model that BMI Chief Executive Mike O’Neill said would increase royalty distributions and enable growth for its affiliates.
BMI was said to have received interest from private equity firms and technology providers during the strategic review process last year. In light of its transition to a for-profit business, the company is expected to appeal to family offices and sovereign wealth funds in addition to buyout groups, according to the sources.
Representatives for BMI and Goldman Sachs declined to comment.