BMI Reconsidering Sale After Switching To For-Profit Model

Performance rights company BMI is reconsidering an attempt to sell itself after switching to a for-profit model, fielding interest from potential buyers including private equity firms.

Who's buying? BMI originally planned to sell last August with a price tag of up to $2 or $3 billion, enlisting Goldman Sachs as an advisor in March 2022 to help review strategic opportunities. The company has reportedly turned to Goldman Sachs once again, around nine months after BMI shared that its not-for-profit business model, which it operated under since its founding in 1939, was switching to a for-profit model. Under the new model,  the company has been investing money earned to accelerate growth in its business. 

What they're saying: BMI CEO Mike O’Neill addressed the potential sale in a letter to staff, confirming that the company is engaging in discussions with outside parties. O'Neill told staff that since announcing a year ago that BMI was no longer considering a sale, "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 outside interest."

O'Neill added that "no final decisions have been made." "It’s an exciting time for BMI and we’re in a strong position for our future," he concluded. "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."