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Bertelsmann merges BMG with Concord to form a $2.2B music giant

A seismic shift in the music industry is underway. Bertelsmann's bold merger reshapes its future—and crowns BMG as a top-four revenue driver.

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2026 May 3 . 8:10 PM

1 min read

The image shows a black record with a label on it that reads "The Gramophone Co. Ltd." The label is... — The image shows a black record with a label on it that reads "The Gramophone Co. Ltd." The label is round in shape and has a white background with black text. The text is written in a bold font and is centered on the label.

Bertelsmann merges BMG with Concord to form a $2.2B music giant

Bertelsmann has announced a major merger between its music division, BMG, and US rival Concord. The deal will create one of the world’s largest music rights companies, controlling four million songs. Leadership at Bertelsmann will also change hands in 2027, with Thomas Coesfeld set to replace Thomas Rabe as CEO. The merged company will keep the BMG name and maintain dual headquarters in Nashville, Tennessee, and Berlin. Bertelsmann will hold a 67 percent stake, while Concord’s owner retains the remaining 33 percent. Thomas Coesfeld, the incoming Bertelsmann CEO, will chair the board, and Bob Valentine will take on the role of CEO.

The new entity is expected to generate $2.2 billion in annual revenue by 2026, with an estimated EBITDA of $730 million. Thomas Rabe, the current CEO, projects the division’s mid-term EBITDA could rise to $1.2 billion. This expansion will position BMG as the fourth major revenue pillar for Bertelsmann, alongside RTL, Penguin Random House, and Arvato.

Leadership changes at Bertelsmann will take effect on January 1, 2027, when Coesfeld officially succeeds Rabe. The merger marks a significant step in the company’s strategy to strengthen its presence in the global music industry. The deal will solidify BMG’s role within Bertelsmann’s core business divisions. With a combined catalogue of four million songs, the merged company aims to compete among the top players in music rights. The transition in leadership and the new structure will take full effect by early 2027.