This week, BMG and Concord confirmed their long-rumored merger, with Bertelsmann as majority-owner and Concord boss Bob Valentine named CEO of the combined company.
Meanwhile, The Orchard acquired OniMusic, a prominent Brazil-headquartered Christian music label, distributor, and “digital intelligence” company.
Plus, Primary Wave Music closed its fourth flagship music fund at $2.225 billion in total commitments, which it says is the “largest dedicated closed-end music royalties fund raised to date in the industry”.
Elsewhere, Believe and TuneCore revealed that they are automatically blocking the distribution of AI-generated tracks produced on unlicensed “pirate studios,” while inking new licensing agreements with ElevenLabs and Udio.
Also this week, Universal Music Group confirmed it will sell half of its equity stake in Spotify, generating around $1.4 billion.
Here are some of the biggest headlines from the past few days…
1. BMG AND CONCORD CONFIRM MERGER, WITH BERTELSMANN AS MAJORITY-OWNER; BOB VALENTINE NAMED CEO OF COMBINED COMPANY
It’s been rumored since back in January, and now it’s official: BMG and Concord are merging.
Both companies confirmed the move on Tuesday (April 28), alongside some interesting details.
For example, Concord boss Bob Valentine will serve as CEO of the new combined company, with Thomas Coesfeld as Chairman. (Coesfeld, currently CEO of BMG, also steps up to become CEO of BMG parent Bertelsmann in January 2027.)
The newly combined company’s global headquarters is in Nashville (currently home to Concord’s HQ) while its European headquarters will be in Berlin (currently home to BMG’s HQ)… (MBW)
2. THE ORCHARD ACQUIRES BRAZIL’S ONIMUSIC, A PROMINENT CHRISTIAN MUSIC DISTRIBUTION PLATFORM
The Orchard has acquired OniMusic, a Brazil-headquartered Christian music label, distributor, and digital intelligence company, home to more than 120 associated artists.
According to a press release from The Orchard, the transaction “marks a landmark expansion into the Latin American gospel market,” which it said is “one of the fastest-growing segments in the global music industry”.
OniMusic was founded in September 2004 by Nelson and Christie Tristão in Belo Horizonte, Minas Gerais… (MBW)
3. PRIMARY WAVE RAISES $2.2 BILLION FOR FOURTH MUSIC FUND
Primary Wave Music has closed its fourth flagship music fund at $2.225 billion in total commitments. The fund exceeded both its original $1.5 billion target and its $2 billion hard cap, Primary Wave said on Wednesday (April 29).
Primary Wave Music IP Fund 4 is the fourth consecutive oversubscribed fund from Primary Wave, which says the vehicle is the “largest dedicated closed-end music royalties fund raised to date in the industry”.
The fund was backed by a global investor base spanning insurance companies, pension funds, endowments, and large family offices, according to a press release, which also noted that Primary Wave is a strategic partner of financial giant Brookfield Asset Management. The fundraise comes at a moment of rapid expansion for Primary Wave… (MBW)
4. BELIEVE AND TUNECORE ARE BLOCKING DISTRIBUTION OF GENERATIVE AI TRACKS MADE ON ‘PIRATE STUDIOS’ LIKE SUNO – WHILE INKING NEW PARTNERSHIPS WITH ELEVENLABS AND UDIO
Believe has unveiled a significant update to its Generative AI policy – one that simultaneously hardens the company’s stance on unlicensed music AI platforms, while deepening its investment in other AI tools.
On the first front: Believe and its global platform for self-releasing artists, TuneCore, are automatically blocking the distribution of AI-generated tracks partly or fully produced on unlicensed “pirate studios”.
Speaking to MBW, Believe founder and CEO, Denis Ladegaillerie, reveals that Believe (including TuneCore) has deployed Gen-AI detection technologies whose capabilities have become “99% reliable” – enabling them to identify the specific AI model and platform that spawned any given track. When said model/platform is identified as originating from an unlicensed service, Believe and TuneCore will block distribution of any content.
Meanwhile, Believe has also confirmed to MBW that it has inked new music licensing agreements with two notable Gen-AI companies: ElevenLabs and Udio… (MBW)
5. UNIVERSAL IS SELLING 50% OF ITS SPOTIFY STAKE, GENERATING AROUND $1.4 BILLION
Universal Music Group will sell half of its equity stake in Spotify and use the proceeds to help fund an expanded share buyback program totaling EUR €1 billion (USD $1.17 billion), the company confirmed on Wednesday (April 29) alongside its Q1 2026 results.
The decision comes three weeks after Bill Ackman’s Pershing Square launched a $64 billion takeover bid for UMG that proposed liquidating the company’s entire Spotify stake to help fund the deal. UMG’s board has yet to make a decision on the Ackman proposal.
A UMG press release on Wednesday confirmed: “Consistent with the Company’s approach to artist compensation, artists will share in the proceeds. UMG’s share will initially be directed towards its buyback program.”
That commitment to artist participation in any Spotify sale dates back to 2018… (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
Music Business Worldwide’s Weekly Round-up Summary
This week’s Music Business Worldwide (MBW) Round-up highlights five major developments in the music business, supported by BMI, a leader in performing rights management.
1. BMG and Concord Merger: A New Industry Giant
BMG and Concord have officially announced their merger, which has been anticipated since January. The newly merged entity will be majority-owned by Bertelsmann, with Bob Valentine, the current CEO of Concord, stepping in as the CEO of the combined company. Thomas Coesfeld, who is presently the CEO of BMG, will become Chairman of the new organization and is set to assume the role of CEO of BMG’s parent company, Bertelsmann, in January 2027. The global headquarters will be located in Nashville, while the European headquarters will be in Berlin. This merger marks a significant consolidation in the music industry, potentially enhancing the companies’ competitive edge.
2. The Orchard Expands into Latin America with OniMusic Acquisition
The Orchard has acquired OniMusic, a notable Christian music label and distributor based in Brazil, which also offers digital intelligence services. This strategic acquisition is framed as a significant move into the Latin American gospel music market, recognized as one of the fastest-growing sectors in the global music landscape. OniMusic, established in 2004, has a roster of over 120 artists and is expected to bolster The Orchard’s presence and influence in this niche market.
3. Primary Wave Music Raises Record-Breaking Fund
Primary Wave Music has successfully closed its fourth flagship music fund, raising a total of $2.225 billion, surpassing its initial target of $1.5 billion and its hard cap of $2 billion. This fund is touted as the largest dedicated closed-end music royalties fund ever raised in the industry. The fundraising attracted a diverse global investor base, including insurance companies, pension funds, and family offices. Primary Wave’s ongoing expansion strategy is supported by a partnership with Brookfield Asset Management, indicating strong investor confidence in the company’s growth trajectory.
4. Believe and TuneCore Block AI-Generated Tracks from Pirate Studios
In a significant policy update, Believe and its self-releasing platform TuneCore announced they will block the distribution of AI-generated tracks created in unlicensed « pirate studios. » The company has developed advanced generative AI detection technologies that have become 99% reliable in identifying the source of tracks. If a track is linked to an unlicensed service, it will be automatically blocked from distribution. Concurrently, Believe has also forged new licensing agreements with AI companies ElevenLabs and Udio, showcasing its commitment to both enforcing copyright standards and embracing legitimate AI technologies in the music creation process.
5. Universal Music Group Sells Half of Its Spotify Stake
Universal Music Group (UMG) has confirmed the sale of 50% of its equity stake in Spotify, which is expected to generate approximately $1.4 billion. This decision aligns with UMG’s plans to fund an expanded share buyback program totaling €1 billion (approximately $1.17 billion). The move comes amidst a $64 billion takeover bid for UMG by Bill Ackman’s Pershing Square, which has prompted discussions about liquidating UMG’s Spotify stake to support the deal. UMG has stated that artists will share in the proceeds from the sale, reflecting its ongoing commitment to artist compensation established in 2018.
Conclusion
This week’s headlines reflect significant shifts in the music industry landscape, including major mergers, strategic acquisitions, record fundraising efforts, and evolving policies regarding AI in music production. These developments illustrate the ongoing transformation within the industry, as companies adapt to new technologies and market dynamics while striving to enhance their competitive positions. With the backing of organizations like BMI, these entities are poised to navigate the complexities of the modern music business effectively.
