Penguin Random House owner Bertelsmann Combines Music Arm With Concord — Update

About this update from Concord Biotech Ltd.

By Aimee LookPenguin Random House owner Bertelsmann is combining its music arm with U.S.-based independent label Concord, marking the latest in a string of deals by the German media conglomerate to amplify its scale.Bertelsmann said Tuesday it would combine its music business BMG with Concord in a cash-and-stock transaction. Concord shareholders will receive a one-time cash payment of $1.16 billion and retain a 33% stake, managed by asset manager Great Mountain Partners.Bertelsmann will hold the remaining 67% stake in the joint company.The new entity, operating under the name BMG, will generate pro forma revenue of $2.2 billion, and $730 million in earnings before interest, taxes, depreciation and amortization in 2026. The deal is anticipated to close in the fourth quarter of 2026.Bertelsmann, which also houses broadcaster RTL Group, has been pushing to partner up and grow its businesses. It acquired Sky Deutschland to combine it with its German broadcaster RTL in 2025. Meanwhile, it bought Penguin Random House from Pearson in 2020.With one of the largest deals in Bertelsmann's history, the company plans to continue to bolster its media and content presence in the U.S., it said. In 2025, America was its largest market, making up 28% of revenue, it said. The new combined company will be headquartered in Nashville, Tennessee, and its European headquarters will be in Berlin.BMG's Chief Executive Thomas Coesfeld will serve as chairman of the combined company and Concord's current CEO, Bob Valentine, will be the chief executive."We've been on a journey to position BMG into a new kind of music company built for the streaming and AI era," Coesfeld said in the release."In a long-term partnership with GMP we will continue BMG's growth trajectory in the dynamic and fast-growing global music market."Write to Aimee Look at [email protected]

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