BMI For Sale? How Much Money Is A PRO Worth?
Just yesterday (July 25th, 2023), a report came out that one of the big three PROs (Performing Rights Organization), BMI, has resumed talks in efforts to sell the company. One of the industry’s biggest juggernauts when it comes to rights management, BMI enlisted the help of banking giant Goldman Sachs in March 2022 to “help review strategic opportunities.”
After initially shutting down the talks due to “underwhelming offers”, BMI is now again, in part with Goldman Sachs, fielding offers from “potential acquirers, including private equity firms.” This comes close to the news that BMI, founded in 1939, had switched from a not-for-profit business model to a for-profit business model, citing that it would open up new business opportunities and the best way to position the company for the future. They are looking for anything between $2 billion - $3 billion, which in my opinion, is a massive undervaluation.
If BMI does get sold, this will shift the landscape. Maybe not immediately, but it will open up the eyes of other organizations/entities to see what they could get for their product. Hopefully this won’t affect any of the systems BMI already has in place, but you never know…
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